SBLC Issuance for Project Finance or Trade Credit
SBLC issuance for project finance or trade credit
Serious projects and cross-border trades can stall when a counterparty requires bank-backed assurance of payment or performance. A Standby Letter of Credit (SBLC), issued by a rated bank under ISP98 or URDG 758, can bridge that gap. It does not replace the need for project equity, cash flow, or trade controls — it reallocates and documents risk so the other side can proceed with confidence. We arrange the issuance and manage the process so the instrument is structured for actual acceptance.
Where SBLCs make a difference
- Project finance where lenders require standby support for debt service or completion risk.
- Trade credit where suppliers demand payment assurance before shipping high-value goods.
- Performance obligations on construction or infrastructure contracts.
- Bid bonds and advance payment guarantees converted to SBLC format for global acceptance.
What we deliver
- Structure paper: SBLC type, amount, expiry, draw terms, and governing rules.
- Underwriting file: applicant and beneficiary profiles, transaction rationale, and risk mitigants.
- Issuer selection: matching bank rating, jurisdiction, and correspondent network to the deal.
- Terms matrix: issuance fees, confirmation costs, advising bank fees, and renewal provisions.
- SWIFT management: MT799 pre-advice, MT760 issuance, and any required MT767 amendments.
- Closing plan: compliance checks, draft approval, SWIFT release, and beneficiary acknowledgment.
Indicative SBLC term sheet
| Item | Range or term | Notes |
|---|---|---|
| Face value | USD/EUR 1m+ | Smaller by exception |
| Tenor | 6–36 months, renewable | Longer case by case |
| Governing rules | ISP98 or URDG 758 | Chosen at structuring |
| Issuance fees | 1.5%–4.0% p.a. of face value | Upfront or periodic |
| Confirmation | Optional by beneficiary request | Extra cost |
| Draw mechanism | Complying demand + statement | As per standby rules |
Final terms depend on credit approval, issuer appetite, and beneficiary acceptance.
Process
Eligibility at a glance
- Applicants: creditworthy corporates or SPVs with verifiable transaction.
- Purpose: tied to a real project, trade, or contractual obligation.
- Security: cash, liquid collateral, or bank-approved credit line.
- Documentation: draft contract, pro forma, and beneficiary details.
Frequently asked
Is this a “leased” SBLC?
No. We only arrange direct bank issuance backed by actual applicant credit support.
Can I discount or use the SBLC as collateral?
Yes, if the beneficiary’s lender accepts it. We structure it to meet those requirements from the outset.
How long to issue?
Clean files can be issued within 2–4 weeks from application.
Can it be confirmed?
Yes. We can arrange confirmation through a top-tier bank if required by the beneficiary.
Request an SBLC issuance plan
Send us the transaction details, beneficiary requirements, and applicant profile. We will match with a suitable issuer and manage the process to delivery.
Start the ProcessThis page is informational. Any engagement and any SBLC issuance are subject to independent credit approval, KYC and AML checks, and executed documentation. Terms, fees, and conditions vary by applicant, beneficiary, and market conditions.
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.
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.
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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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Submit a RequestOnce 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.
