This document describes the procedures for purchasing standby letters of credit (SBLCs) from a provider. To purchase SBLCs, buyers must have a minimum of $100M in an account with or credit facility from a top 20 bank. The buyer then submits compliance documents and the provider verifies the buyer's bank. Once verified, the provider purchases SBLCs within 24-48 hours and notifies the buyer, who can then request bank-to-bank confirmation from the provider's bank before paying. Upon payment, the SBLCs are delivered to the buyer. Bank guarantees are also available under the same terms.
This document describes the procedures for purchasing standby letters of credit (SBLCs) from a provider. To purchase SBLCs, buyers must have a minimum of $100M in an account with or credit facility from a top 20 bank. The buyer then submits compliance documents and the provider verifies the buyer's bank. Once verified, the provider purchases SBLCs within 24-48 hours and notifies the buyer, who can then request bank-to-bank confirmation from the provider's bank before paying. Upon payment, the SBLCs are delivered to the buyer. Bank guarantees are also available under the same terms.
This document describes the procedures for purchasing standby letters of credit (SBLCs) from a provider. To purchase SBLCs, buyers must have a minimum of $100M in an account with or credit facility from a top 20 bank. The buyer then submits compliance documents and the provider verifies the buyer's bank. Once verified, the provider purchases SBLCs within 24-48 hours and notifies the buyer, who can then request bank-to-bank confirmation from the provider's bank before paying. Upon payment, the SBLCs are delivered to the buyer. Bank guarantees are also available under the same terms.
This document describes the procedures for purchasing standby letters of credit (SBLCs) from a provider. To purchase SBLCs, buyers must have a minimum of $100M in an account with or credit facility from a top 20 bank. The buyer then submits compliance documents and the provider verifies the buyer's bank. Once verified, the provider purchases SBLCs within 24-48 hours and notifies the buyer, who can then request bank-to-bank confirmation from the provider's bank before paying. Upon payment, the SBLCs are delivered to the buyer. Bank guarantees are also available under the same terms.
STANDBY LETTERS OF CREDIT SBLCs /BGs AVAILABLE FOR PURCHASE
(* NOTE BANK GUARANTEES ARE ALSO AVAILABLE AT THE SAME PRICE AND WITH THE SAME PROCEDURES)
DESCRIPTION OF STANDBY LETTERS OF CREDIT (SBLCS)
PRICE TBA INSTRUMENTS: SBLCS CURRENCY: EURO (€)/ USD TERM: ONE YEAR AND ONE DAY ISSUING BANK: HSBC LONDON; SETTLEMENT BANKS: HSBC LONDON; BARCLAYS BANK LONDON: DBS BANK SINGAPORE; CREDIT SUISSE ZURICH AMOUNT AVAILABLE: 100M UP TO 50B CONTRACT (ADDITIONAL CONTRACTS AVAILABLE: CONSECUTIVE OR CONCURRENT)
PROCEDURES TO PURCHASE SBLCS
1) Buyer must have a minimum of 100M Euros/USD in an account OR AN ACTIVE CREDIT
FACILITY with a minimum of 100M Euros/USD in a top 20 bank (preferably banks located in Western Europe; UK; Canada; USA; Singapore; Hong Kong)
2) Buyer submits the following Compliance documents:
A) Client Information Sheet (CIS)
B) Bank Confirmation Letter - The Buyer’s bank officer sends an email to the provider’s bank officer, copying in the provider Stating the following “we________Bank confirm with full bank responsibility that our client_______is in good standing with the bank and there is a minimum of 100m Euros/USD in the buyer’s account OR that the Buyer’s credit facility is a) in good standing b) fully collateralized and c) that the Buyer has access to a minimum of 100M Euros/USD”.
3) Provider will verify the bank officer’s IP address – no contact is made with the Buyer’s bank. (NOTE: the IP Address verification is completed within two hours of the Provider/Titleholder receiving the bank officer e-mail.) Once the IP address is verified the Provider/Titleholder will contact the Buyer immediately to arrange the delivery of the SBLCs and a contract.
4) Provider/Titleholder purchases the SBLCs (the SBLCs are available for delivery within 24-48 hours) NOTE #1 THE SBLCS WILL ALREADY BE TITLED IN THE BUYER OR BENEFICIARY NAME AS PER PREVIOUS INSTRUCTIONS BY THE BUYER. NOTE #2 THE BUYER DOES NOT SIGN A CONTRACT UNTIL THE SBLCS HAVE BEEN PURCHASED.
5) Provider/Titleholder will contact the Buyer to confirm that the SBLCs have been purchased and are ready for delivery and will provide the Contract to the Buyer for signature. NOTE: AFTER RECEIVING CONFIRMATION FROM THE PROVIDER TITLEHOLDER THAT THE SBLCS HAVE BEEN PURCHASED AND ARE READY FOR DELIVERY THE BUYER CAN REQUEST A BANK-TO-BANK CONFIRMATION THAT THE SBLCS ARE AVAILABLE FOR PURCHASE/DELIVERY THIS COMMUNICATION CAN BE IN ANY FORM SUITABLE TO THE BUYER’S BANKER REQUEST - SEE PROCEDURES BELOW:
IMPORTANT NOTE: THE FOLLOWING PROCEDURES APPLY IF THE BUYER AND
PROVIDER ARE TRANSACTING OUT OF SEPARATE BANKS. IF THE BUYER HAS FUNDS IN BARCLAYS BANK LONDON; HSBC LONDON; CREDIT SUISSE ZURICH; OR DBS SINGAPORE THE TRANSACTION CAN BE COMPLETED INTERNALLY.
6) Buyer’s bank sends a MT-799 Request for Confirmation to the Provider/Titleholder’s bank requesting an MT-799 RWA confirming that the SBLCs are in custody at the Provider/Titleholder’s bank and available for purchase/delivery. A phone call or email to the Titleholder/Provider can also be requested. Please note all communications are with a senior banker from the titleholder side and comes with absolute bank responsibility.
7) Provider/Titleholder’s bank replies with an MT-799 Confirmation SWIFT with full bank responsibility that the SBLCs have been purchased and are in custody at the Provider/Titleholder’s bank and ready for purchase and delivery and that upon receipt of the MT- 103 SWIFT payment the SBLCs will be delivered immediately via MT-760 SWIFT into the Buyer’s account.
NOTE: The Buyer does not send the MT-103 payment until he receives confirmation from his bank officer that he has confirmed bank-to-bank with full bank responsibility that the Provider/Titleholder’s bank will deliver the SBLCs as stated in the MT-799 Confirmation SWIFT.
