The Standby Letter of Credit and Bank Guarantee is provided by our bank (as the provider) to the beneficiary’s bank account and it is transmitted interbank only through SWIFT (MT760). During the lifespan of the instrument, the beneficiary may utilize it for the two main and popular purpose of credit enhancement (raise loan, enhance credit line) or as a payment guarantee (Trade positions of a buy and sell contract for good and/or services to be rendered). At the end of the tenure of the agreement that guided the issuance, the beneficiary is expected to return the bank guarantee to our issuing bank without encumbrances or liens and the beneficiary also has the obligation to indemnify us against any loss incurred against such instrument.

In addition, the beneficiary also has the option of extending the contract because our collateral transfer agreement or Deed of agreement always comes with an option of rolls and extension of up to 5 years and in some cases 10 years depending on how strong the beneficiary is placed and our due diligence.

Our Bank Guarantees and Standby Letter of Credit are available from the range of $/€1 million to $/€ 20 Billion. Any amount over $/€500 Million is achievable in tranches till the maximum limit is expended. All depends on the intake capacity of the beneficiary or applicant.

Our Bank Guarantee and Standby Letter of Credit is issued from AAA rated banks only and it is widely accepted in all banks in the world with some exception that we may not be willing to send out a SWIFT to some banks/financial institutions based on our previous experience and relationship with such bank or institutions. There is always an option for the applicant or beneficiary to submit their verbiage for review depending on the approval of our bank otherwise, our bank’s standard verbiage will be used in SWIFT transmission of such bank instrument which will be made available in the contract which is usually in the ICC758 (UPC 600) format which is widely accepted for activation of credit line.

Contact us today for bank instruments for your projects financing needs. Contact us and we shall furnish you with our flexible procedures.