Standby Letter of Credit for Investment Program

SBLC for Investment, Trade or Project Finance

Standby Letter of Credit (SBLC) Term Sheet
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.
Purpose
  • Performance guarantees.
  • Payment guarantees for trade and project finance transactions.
  • Credit enhancement for lenders or investors.
SBLC Amount
  • Minimum: $5 million.
  • Maximum: $100 million USD (higher amounts subject to additional underwriting).
Tenor
  • 1 to 3 years, renewable.
  • Shorter tenors available for specific transactions.
Retainer Fee
  • $59,500 for facilities up to $5M USD
  • $125,000 for facilities up to $50M USD
  • $375,000 for facilities $50M to $100M USD
  • Non-refundable.
  • Payable upon term sheet execution.
Issuance Fee
  • 1.0% to 3.0% of SBLC 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 $100,000,000 USD
Conditions Precedent
  • Submission of financial statements and credit documentation.
  • Clear proof of underlying transaction or project.
  • Verification of collateral or guarantees supporting the SBLC.
Security Package
  • First-ranking lien on collateral, if applicable.
  • Parent company or personal guarantees.
  • Assignment of receivables or other cash flow rights.
Disbursement Timeline
  • SBLC issuance within 10-30 days after all conditions precedent are satisfied.
*financely.io – Trade & Project Finance Advisory*
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