SBLC Structure Example

 

 Standby Letters of Credit Proposed Structure – SBLC to Support Non-Depletion Account

^{The applicant of SBLCs/Guarantees
Entity Name 1} 

^↓

^{The issuer of SBLCs/Guarantees
Entity Name 2}

^↓ 

^SBLC/G'tee

^↓

^{Advising/Financing Bank
Bank Name}

^{For Beneficiary
Company Name or Existing Client}

^↓

^{Facility
Non-depletion Credit Account
Secure by SBLC/Guarantee
Loan Account debited
Deposit Account credited
Interest netting as and when the facility required}

^↓

^{Activity/Required
Confirmation of balance to clients is required from time to time. No risk to Bank as funds do not move}

 

_{Return to the blog library}