Credit Enhancement Advisory
We arrange real bank support that helps you win work, unlock advances, and close debt. Our focus is simple. Standby Letters of Credit, Bank Guarantees, Bid Bonds, and Advance Payment Guarantees. Issued by regulated banks to named beneficiaries. Clean wording. Clear draw logic. No games.
If you need bank paper that stands up in credit committees, we structure it, document it, and get it issued. You get certainty on day one and pricing that matches your risk, not someone else’s story.
What We Do
- Scope the exposure, beneficiary needs, and draw conditions.
- Select the right instrument and legal framework (ISP98, UCP600, or URDG758).
- Build controls: reimbursement, blocked accounts, insurance and hedging assignments where relevant.
- Run issuance with rated banks. Confirmation added when the beneficiary wants local risk.
- Coordinate with lenders so your paper actually improves terms at closing.
Instruments We Arrange
Standby Letters of Credit (SBLC)
- Performance and warranty coverage for EPC and O&M
- Debt service support during construction or ramp up
- Issued under ISP98, delivered via MT760
Bank Guarantees (BGs)
- Payment guarantees on supply and offtake contracts
- Custom wordings under URDG758 or local market forms
- Optional confirmation for cross-border comfort
Bid Bonds
- Secure tender participation without tying up cash
- Sized to RfP requirements with short tenors
- Convertible to performance security on award
Advance Payment Guarantees (APGs)
- Unlock mobilization funds while protecting the employer
- Amortizes as milestones complete
- Aligned to contract currency and timeline
Where Credit Enhancements Fit In Your Deal
| Stage |
Use |
Instrument |
| Tender |
Evidence of commitment to execute on award |
Bid Bond |
| Award to NTP |
Secure performance and release mobilization |
SBLC (Performance), APG |
| Construction |
Backstop debt service or cost overrun |
SBLC (Debt Service) |
| Operations |
Warranty and defects period security |
SBLC or BG |
Mini Term Sheets
| SBLC |
Purpose: Performance, advance, or debt service coverage. Rules: ISP98. Delivery: MT760. Tenor: 6 to 24 months with extension. Currency: USD or EUR. Collateral: cash or treasuries with reimbursement agreement. Confirmation: available where required. |
| Bank Guarantee (BG) |
Purpose: Payment and performance obligations in commercial contracts. Rules: URDG758. Tenor: matched to contract. Issuer: rated bank. Local confirmation optional. |
| Bid Bond |
Purpose: Tender security. Amount: per RfP (commonly 2% to 5%). Tenor: 60 to 180 days. Conversion: can roll into performance security on award. |
| Advance Payment Guarantee (APG) |
Purpose: Protects the employer’s advance. Amortization: declines with milestones. Rules: ISP98 or URDG758. Tenor: through mobilization and early works. |
Pricing And Engagement
Issuer fees are market based and tied to the risk, typically a quoted percentage per year on the covered amount for SBLCs and BGs. Bid Bonds and APGs price more lightly due to shorter exposure and amortization mechanics. We charge a retainer to run underwriting and a success fee when the instrument is issued or, where relevant, when financing closes.
If the beneficiary wants local bank risk, a confirmation fee applies. Legal costs are on the client. We push to keep wording tight so you are paying for real protection, not fluff.
Our Process
| Step |
What Actually Happens |
| Scoping |
We quantify the exposure, beneficiary demands, and the exact draw trigger the counterparty will accept. |
| Controls |
We set reimbursement mechanics, account control, and insurance assignments so the bank can issue. |
| Term Sheet & Text |
We negotiate the instrument text under the chosen rule set with objective, testable draw conditions. |
| Issuance |
Bank issues to the named beneficiary. MT760 or equivalent message sent. Confirmation added if required. |
Red Flags vs. A Clean Process
Walk away when you see
- “Leased SBLC” or “buy a guarantee” pitches
- Unnamed issuers and vague paperwork
- Broker chains that hide bank officers
- No contract, no model, and big claims
Run this process instead
- Define the risk and draw wording up front
- Put real controls in place for the issuer
- Align the instrument with lender requirements
- Close with regulated banks and named officers
Quick FAQ
Can I reuse one instrument for multiple contracts?
No. Each instrument is issued to a named beneficiary for a specific obligation. That is why banks accept it.
Can an SBLC or BG be confirmed by a local bank?
Yes. We add confirmation when the beneficiary requires local risk or settlement comfort.
Do Bid Bonds convert to performance security on award?
Often yes. The tender docs will state the conversion path and timing.
Will an APG reduce as milestones are met?
Yes. We structure amortization linked to certified progress so you are not overpaying for cover you no longer need.
Can you coordinate wording with my lender?
Absolutely. We align text so the instrument improves covenant headroom and pricing instead of just sitting in a drawer.
Request Advisory Support
Send the contract summary, required instrument, amount, currency, and timeline. We will revert with a term outline, draft wording, and closing plan.
Contact Us
We act as arranger and advisor through regulated partners. We do not hold client funds. Any SBLC, BG, Bid Bond, or APG is subject to KYC, AML, sanctions screening, legal documentation, perfected security, and approvals by issuing and confirming banks.