Standby Letters of Credit
SBLCs are written undertakings given by a bank (Issuing Bank), at the request of an Applicant (which can be another bank) to provide security or an indemnity to the beneficiary as a contingency for the other contracting party’s default under an underlying performance or financial contract.
Scotiabank can help by issuing a SBLC on your behalf in any country where we have a local presence. In addition, a wide network of correspondent banks can issue SBLCs locally on our behalf in those countries where Scotiabank is not present.
• Issued in favour of a local beneficiary, in the country’s currency or in US dollars
• Offers the option of automatic expiry date renewal for a specified period of time
• Administered by Scotiabank, ensuring compliance with credit terms and local regulations
• Improves cash flow by eliminating or reducing your need to provide cash collateral as security.