Credit Enhancement SBLC
Well Vintage offers its clientele with ability to issue cash backed financial instruments as a credit enhancement or Balance sheet enhancement.
Subject to the clients requirement this can be
issued either as:
- Bank comfort letter
- Swift message 199
- Swift message 799
- Standby Letter Credit
The Standby Letter Credit (and or instrument) will be issued as a specific credit enhancement. The Standby Letter Credit would be issued to the Beneficiary. The financial instrument is only available to be utilised as a supporting financial credit enhancement or placed as collateral on behalf of the Beneficiary.
The financial instrument is not available to be called upon by any third- parties as financial security or guarantees. The Beneficiary will upon execution of a Term Sheet sign an indemnity agreement between the Beneficiary and Issuer. This agreement is lodged at our bank.
The Standby Letter Credit will be issued on the approved verbiage of the Issuer and will be supplied upon completion of our application forms. These forms are available to download below.
Due Diligence Requirements
The Beneficiary account which receives the Credit Instrument is required to have an open trade credit line with the issuing Bank. The Beneficiary would need to provide financial evidence of serviceability for both repayment of principal / interest and agency fees. The serviceability would be required to be applicable / financially obtainable before the maturity of the proposed credit instrument. Serviceability from the Beneficiary would need to be independently verified by the issuer and directly linked to the proposed issuance of Credit Instrument.
The issuing firm would either be one of the following entities:
- Well Vintage Enterprises FZE
- Well Vintage Enterprises Ltd
- Well Vintage Enterprises Pte Ltd
- PT Well Vintage Indonesia
Starting form 7.99% per annum. Payable monthly at closing of each transaction following receipt of Standby
Fees are subject to the size, trade strength and our balance sheet availability.
PROCESS AND PROCEDURE
- Term Sheet Executed by trading partner.
- Well Vintage Enterprises Ltd receive the due diligence documentation along with the signed indemnity agreement.
- Issuer submit the documentation to Well Vintage Bank.
- Trading partner’s bank initiate bank to bank communication to Well Vintage.
- The bank to bank communication would also include confirmation of payment for all fees associated.
- KYC and AML checks will be completed on both ends.
- Well Vintage will confirm receipt and acceptance.
- Well Vintage will issue the Standby Letter Credit (within 14 banking days of acceptance).
Ready to discuss your Project?
We would require a detailed summary of your requirements so we can advise you accordingly. Please download and fill out the attached CIS and application forms.