PRODUCT PURPOSE/DESCRIPTION
• Whereas payments under regular Letters of Credit are triggered by the performance of the exporter under a specified trade contract SBLC’s are binding commitments given by the bank to support your trading activities and are a payable on specific conditions and not just simple demand.
• Upon your request as an importer, the Bank can provide this form of conditional undertaking on your behalf to the beneficiary.
• Should you fail to make settlement, we will make settlement on your behalf upon the presentation of specific documents by the beneficiary required under the credit terms.
FEATURES AND FUNCTIONALITY
- Target Customer
• Importers, Exporters. - Security
• Tangible security –property/land or 100% cash margin in currency of transaction or 110% if the cash held is in weaker currency. - Charges:
• As per the Tariff guide
BENEFITS
Benefits to Customer
- Available in all major currencies.
- Credit enhancement
- Provides a form of security to the trading partners
- Mitigate Risk Form of Financing
Benefit to Bank
- Grow Trade Assets as we provide funding
- Negotiation Fees on facility and handling fee at each drawdown Interest income
- Leverage on the Product for any additional cross sell opportunities e.g., FX, Cash etc.