| Parameter |
Details |
| Borrower |
- Exporters or sellers holding confirmed, irrevocable letters of credit.
- Corporate entities or SMEs with proven operational and trade history.
|
| Issuer Bank |
- Reputable banks with strong credit ratings (AA or higher).
- Compliant with UCP 600 rules.
|
| Facility Type |
- LC Discounting facility to monetize the LC before maturity.
- Non-recourse or recourse options available based on LC terms.
|
| Facility Amount |
- Up to 100% of LC face value, minus applicable fees.
- Minimum: $1 million; Maximum: $200 million.
|
| Tenor |
- 30 to 180 days, matching the LC maturity period.
- Longer tenors available for deferred payment LCs.
|
| Retainer Fee |
- Non-refundable: $30,000 to $75,000 based on facility size.
- Payable upon term sheet execution.
|
| Discounting Rate |
- LIBOR + 1.5% to 3.5%, depending on issuer bank rating.
- Fixed rates available for specific transactions.
|
| Conditions Precedent |
- Submission of the original LC document.
- Verification of LC authenticity with the issuing bank.
- Compliance with all trade and regulatory requirements.
|
| Risk Minimization Checklist |
- Confirm LC terms with both buyer and issuing bank.
- Verify counterparty credibility and payment history.
- Secure counterguarantees, if necessary, from a reputable institution.
|
| Disbursement Timeline |
- Funds disbursed within 5-10 business days after submission of all required documents.
- Subject to successful verification and approval.
|