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Irrevocable Standby Letter Of Credit
"I need an Irrevocable Standby Letter of Credit for SAR 25 million to secure a construction project in Riyadh, with our company as applicant and Saudi Construction Corp as beneficiary, expiring March 15, 2025, with automatic 6-month extension provisions and allowing partial drawings."
1. Letter Reference Number and Date: Unique identifier for the SBLC and issuance date
2. Issuing Bank Details: Complete name, address, and contact information of the issuing bank
3. Beneficiary Information: Full name and address of the party in whose favor the SBLC is issued
4. Applicant Information: Full name and address of the party requesting the SBLC
5. Credit Amount: The maximum amount available under the SBLC, stated in both numbers and words
6. Expiry Details: Clear statement of expiry date and place
7. Form of Presentation: Specified format and location for presentation of documents
8. Drawing Terms: Conditions and required documents for drawing under the SBLC
9. Partial Drawings Statement: Whether partial drawings are allowed or prohibited
10. Transferability Statement: Whether the SBLC is transferable or not
11. Governing Law Declaration: Clear statement that Saudi Arabian law governs the SBLC
12. Shariah Compliance Statement: Declaration of compliance with Islamic banking principles
13. Authentication/Signature: Official bank signatures and authentication details
1. Confirmation Instructions: Include when confirmation by another bank is requested
2. Multiple Currency Provisions: Include when the SBLC allows for drawings in multiple currencies
3. Assignment Provisions: Include when proceeds of the SBLC are assignable
4. Automatic Extension Clause: Include when the SBLC has an automatic extension feature
5. Special Commission Statement: Include when specific commission arrangements exist (must be Shariah-compliant)
6. Counter-Guarantee Reference: Include when the SBLC is issued under a counter-guarantee structure
7. Force Majeure Provisions: Include when specific force majeure terms are required beyond standard provisions
1. Schedule A - Required Documents: Detailed list and format of all documents required for drawing under the SBLC
2. Schedule B - Form of Demand: Prescribed format for beneficiary's demand under the SBLC
3. Schedule C - Special Conditions: Any additional conditions or requirements specific to this SBLC
4. Appendix 1 - Underlying Transaction Details: Reference to the underlying commercial transaction or obligation
5. Appendix 2 - Bank Authorization Documents: Copies of relevant bank authorizations and powers of attorney
6. Appendix 3 - Communication Procedures: Detailed procedures for communications between parties
7. Appendix 4 - Fee Schedule: Schedule of all applicable fees and charges (structured in Shariah-compliant manner)
Authors
Banking and Financial Services
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Compliance
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International Business
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Credit Administration
Banking Operations
Documentary Credits
Shariah Advisory
Chief Financial Officer
Treasury Manager
Trade Finance Manager
Financial Controller
Commercial Director
Contract Manager
Legal Counsel
Compliance Officer
Risk Manager
Project Finance Manager
International Trade Specialist
Banking Operations Manager
Credit Manager
Documentary Credits Specialist
Shariah Compliance Officer
Corporate Banking Manager
Senior Finance Executive
Import/Export Manager
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