What an SBLC does
Support for specified financial or performance obligations.
A Standby Letter of Credit can be used within qualifying international transactions to support specified financial or performance obligations.
Avis Galaxy Trading coordinates qualifying SBLC structures between relevant applicant, issuer, beneficiary and receiver-side parties.
Minimum transaction value
SBLC enquiries are considered from a minimum instrument value of:
USD1,000,000
USD 1 million.
Our SBLC services
Depending on the transaction, our involvement may include:
- Applicant coordination
- Issuer-side coordination
- Beneficiary coordination
- Receiver-side coordination
- Documentation preparation
- Documentation review
- SBLC structuring
- Instrument wording coordination
- Issuing-route coordination
- Receiving-bank coordination
- Draft review
- Issuance coordination
- Advising coordination where applicable
- Confirmation coordination where applicable
- Lease structures where applicable
- Monetisation coordination where applicable
- Bank-to-bank process coordination
- Transaction follow-up
SBLC process
Eight stages, assessment to utilisation.
Initial assessment
The instrument amount, purpose and proposed parties are established.
Documentation
Relevant corporate and transaction information is submitted.
Structuring
The proposed instrument terms, tenor, banking route and receiving requirements are established.
Review
Relevant counterparties assess the proposed structure and documentation.
Draft review
Where applicable, draft wording is reviewed before proceeding.
Issuance process
Once applicable requirements and approvals are satisfied, the transaction proceeds through the agreed process.
Advising / confirmation
Where required and accepted, advising or confirmation can form part of the transaction structure.
Utilisation
Where applicable, a qualifying monetisation or utilisation process may be coordinated with the relevant counterparties.
Information required
What to send with an SBLC enquiry.
- Required SBLC amount
- Purpose of instrument
- Applicant details
- Beneficiary details
- Preferred issuing route
- Receiver bank details
- Required tenor
- Draft wording, if available
- Underlying transaction details
- Required utilisation structure
Need an SBLC?
Minimum transaction USD 1 million. No instrument should be considered issued, confirmed or monetised until the applicable stages and approvals have occurred.