Letter of Credit Issuance for Deals in Africa

Letter of Credit Issuance for Deals in Africa | SBLC, DLC, UPAS, Confirmation

Letter of Credit Issuance for Deals in Africa

Secure letters of credit for African trade and infrastructure with wording that clears, issuers your counterparties accept, and confirmation where local payout certainty is required. We set up SBLCs and DLCs under the right rule set, align charges and demand mechanics, and keep the process tight from draft to SWIFT and through expiry. Learn more about our Africa LC service here: Letter of Credit for Africa.
Who We Serve
  • * Importers, traders, and distributors across energy, metals, agribusiness, and FMCG
  • * EPCs and OEMs supplying equipment to public and private projects
  • * State-owned enterprises, municipalities, and utilities
  • * Development finance backed projects and donor-funded procurements where LC wording is prescribed
B2B Use Cases
  • DLCs under sales contracts for commodities and industrial goods
  • Performance and warranty standbys for EPC and service agreements
  • Usance 30 to 180 days with UPAS for supplier payout at sight
  • Rolling LCs under framework releases and call-off schedules
  • Lease and rental standbys for equipment deployments
B2G Use Cases
  • Bid and performance standbys on public tenders
  • Advance payment standbys with staged reduction or extend-or-pay
  • URDG 758 guarantees where agencies mandate their own forms
  • Concession, interconnection, and utility security
  • Local confirmation to ensure domestic payout when triggered

Key Corridors and Practical Notes

Nigeria and Ghana
  • Consider confirmation by a first class bank to de-risk local settlement
  • FX availability and central bank instructions can affect reimbursement routes
  • Keep demand certificates short, with clear place of presentation
  • Align charges clause to avoid disputes across advising and confirming banks
Kenya and East Africa
  • For public bodies, URDG-based templates may be required
  • UPAS helps suppliers receive sight funds while applicant repays at maturity
  • Stated expiry and business day rules reduce presentation friction
  • Pre-agree courier or electronic presentation where policy allows
South Africa
  • Large banks are often acceptable issuers for regional beneficiaries
  • For cross-border trades, optional confirmation can tighten payout certainty
  • Use simple extend or pay language for project-related standbys
  • Keep amendments controlled and tracked with clear notices
Egypt and North Africa
  • Check agency or SOE templates and rule set preferences early
  • DLCs under UCP600 remain common for equipment and spares
  • Confirmation may be requested for local currency settlement comfort
  • Make sure advising bank setup is completed before shipment

Instruments and Rule Sets

Performance LCs
  • Standby LCs under ISP98 or UCP600
  • Demand guarantees under URDG 758 where required
  • Bid, performance, advance payment, warranty, and retention
  • Extend or pay language with simple demand certificates
Financial LCs
  • DLC MT700 sight or usance under UCP600
  • UPAS for sight payout with applicant repayment at maturity
  • UPAU where beneficiary is paid at usance maturity
  • Optional confirmation and assignment of proceeds

Process to Issuance

  1. Share contract or RFP, beneficiary instructions or template, KYC, and financials
  2. Receive eligibility view, issuer and confirmer options, and fee letters
  3. Finalize wording, rule set, expiry, place of presentation, and charges
  4. Issue MT700 or MT760 and confirm effectiveness with the advising bank
  5. Manage amendments, notices, and extension events. Track expiry
  6. If called, present the stated demand or documents and arrange payout when compliant

Eligibility and Documents

Baseline Profile
  • Operating company or prime contractor with verifiable activity
  • Underlying contract, RFP award, lease, or utility requirement
  • Issuer and jurisdiction acceptable to the beneficiary
  • Reimbursement or security acceptable to the issuer
Checklist to Start
  • KYC, corporate documents, ownership table
  • Recent financials and bank statements
  • Draft LC or standby text with amount, tenor, rule set, and purpose
  • Beneficiary instructions and any required template or agency form

Illustrative Pricing

Issuance 0.30% to 1.20% flat per 90 days by issuer and corridor. Confirmation 0.40% to 1.70% flat where required. Document examination per schedule. UPAS discount margin priced over base for the usance period. Legal and courier costs apply. Final allocation follows the charges clause.

Frequently Asked Questions

When should I add confirmation for Africa-bound deals?

Add confirmation when the beneficiary requests a domestic undertaking or when local payout certainty is a condition to ship. It also helps where FX or settlement risks are a concern.

UPAS vs UPAU. What is the difference?

UPAS pays the beneficiary at sight while the applicant repays at maturity. UPAU pays the beneficiary at the usance maturity. UPAS improves supplier liquidity without changing the applicant’s tenor.

Do public beneficiaries accept ISP98 standbys?

Many agencies publish URDG-based guarantee forms. Where ISP98 is allowed, we recommend it for standbys. If URDG is mandated, we follow the agency text and secure an acceptable bank name.

Request LC Issuance for Africa

Share your contract or RFP, beneficiary instructions, preferred wording, amount, tenor, KYC, and financials. We revert with eligibility, pricing bands, issuer and confirmation options, and a direct path to issuance and settlement for SBLCs, DLCs, and usance structures including UPAS or UPAU.

Go to LC for Africa

Financely acts as advisor and arranger on a best efforts basis. We are not a bank. All mandates are subject to KYC and AML, sanctions screening, credit approval, legal documentation, counterparty capacity, and applicable laws. Nothing here is a commitment to lend or an offer of securities. Terms vary by bank names, jurisdictions, and documentary quality.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.


All submissions are promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.

Trade Finance

Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.

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Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.

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Acquisitions

Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.

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For Banks

Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.

Submit a Request

Once we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.

Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.