Description
Sir/Madam,
We are ready and able to deliver bank instruments in the form of BG/SBLC to your
nominated bank coordinates strictly in adherence with the following set of
procedures. Kindly review the procedures and inform on your readiness to proceed
so that we are able to send our Deed of Agreement and other required contract
documents.
TRANSACTION DESCRIPTION:
1. Instrument: Bank Guarantee (BG) or Standby Letter of Credit (SBLC)
2. Total Face Value: Euro/USD 1,000,000.00 – Euro/USD 5,000,000,000.00
3. Issuing Bank: HSBC Bank London, Barclays Bank London, Deutsche Bank AG
Frankfurt
4. Age: One Year and One Day (With the option of Rolls and
Extension)
5. Leasing Fee: Based on the Face Value of BG/SBLC Plus (0.5% + X%)
Commission.
1M – 50M: 4.0% + (0.5% + X%) = 4.5% + X%
51M – 100M: 3.5% + (0.5% + X%) = 4.0% + X%
101M – 500M: 3.0% + (0.5% + X%) = 3.5% + X%
1B – 5B: 2.5% + (0.5% + X%) = 3.0% + X%
6. Delivery: Bank to Bank Swift MT799 and/or MT760
7. Payment: MT103
8. Hard Copy: By Bank Bonded Courier within 7 banking days after delivery
of Swift.
TRANSACTION PROCEDURE:
1. Lessor and Lessee execute, sign and initial this Deed of Agreement, which
thereby automatically becomes a full commercial recourse contract to be lodged
by both parties for initiation of Swift Transmission.
2. Within three (3) banking days after both parties sign the Agreement,
Lessor will issue a Notarized signed and sealed Corporate Refund Recourse
Undertaking duly endorsed by the issuing bank to the Lessee guarantying to
refund to the Lessee all cost incurred by Lessee as the
transmission/administrative charges for the transmission of Pre-Advice via Swift
MT799 or BG/SBLC via Swift MT760 or both after due execution of the contract and
in case of failure on the Lessor’s side the Notarized signed and sealed
Corporate Refund Recourse Undertaking guarantees that the Lessor refunds
completely the transmission/administrative fees in addition to a the penalty for
failure of performance being 1% of the total face value of BG/SBLC.
3. Within three (3) working days after the Lessee receives contract documents
including the invoice and refund undertaking from the Lessor, the Lessee will
make payment by direct wire transfer into the Lessor’s provided bank cordinates
for the receiving of the bank transmission/administrative charges the bank
transmission/administrative fees for the Pre-Advice via Swift MT799 or BG/SBLC
via Swift MT760 or both as the case maybe in the amount of Euro/USD XX,000.00.
4. Within two (2) banking days after confirmation of receipt of payment of
the bank transmission/administrative fees charges for the BG/SBLC via Swift
MT760 or Pre-Advice via Swift MT799 or both in Lessor’s bank account, the Lessor
will deliver the Pre-Advice or BG/SBLC via Bank to Bank confirmation of Swift
MT799 or MT760 to the Lessee’s banker including the hard copy
standardcharter