| Parameter |
Details |
| Issuer |
- AAA-rated international banks.
- Full compliance with UCP 600 or ISP98 rules as applicable.
|
| Applicant |
- Corporate entities or project SPVs with a proven credit profile.
- Backed by collateral, retainer fees, or parent company guarantees where required.
|
| Beneficiary |
- Suppliers or exporters requiring payment assurance.
- Trade partners engaged in international transactions.
|
| Purpose |
- Facilitate international trade transactions.
- Provide payment assurance to exporters.
- Mitigate risks associated with cross-border transactions.
|
| LC Amount |
- Minimum: $100,000 USD.
- Maximum: $10,000,000 USD (higher amounts subject to additional underwriting).
|
| Tenor |
- 30 days to 1 year, renewable.
- Shorter or longer tenors available based on transaction requirements.
|
| Retainer Fees |
- $55,000 for facilities up to $5M USD.
- $135,000 for facilities up to $10M USD.
- Non-refundable.
- Payable upon term sheet execution.
|
| Issuance Fee |
- 1.0% to 3.0% of LC face value annually.
- Based on creditworthiness and transaction complexity.
|
| Issuing Banks |
JPMorgan Chase, China Construction Bank |
| Interest Rates |
U.S. Prime Rate + 3% per annum |
| Maximum LC Face Value |
$10,000,000 USD |
| Conditions Precedent |
- Submission of financial statements and credit documentation.
- Clear proof of underlying trade transaction.
- Verification of collateral or guarantees supporting the DLC.
- Compliance with applicable trade regulations and standards.
|
| Security Package |
- First-ranking lien on collateral, if applicable.
- Parent company or personal guarantees.
- Assignment of receivables or other cash flow rights.
|
| Disbursement Timeline |
- DLC issuance within 10-20 days after all conditions precedent are satisfied.
|