SBLC REQUIRED:
FACE VALUE: $345M
TYPE: LEASED, NON-TRANSFERABLE
LEASE FEE: GROSS 10% OF FACE VALUE
PURPOSE: SUPPORT PURCHASE/SALE BUYER/SELLER SPA/C1
DELIVERY: MT799 PRE-ADVICE RWA / MT799 BPU/ICBO RWA REPLY BACK /
MT760 / MT103
VERBIAGE: SEE ANNEXES BELOW
BACKGROUND
Seller & Buyer Signed SPA and Seller Issued Ci with terms accepting to pay the
administrative (Leasing) fee of the SBLC. Seller and Buyer agreed that the buyer shall
contract with a lender for issuing the SBLC and the seller shall accept the lenders’ BPU
to pay the Admin (leasing fee).
TERMS:
Procedure:
1. The Buyer (applicant) sign and execute a DOA with the lender (Provider). The seller is
the beneficiary and the SBLC is issued to the sellers’ bank “receiving bank”.
2. The Lender (provider) bank send MT799 RWA to the Seller (beneficiary) bank along
with MT799 BPU/ICBO and MT760 verbiage/formats.
3. The Seller (Beneficiary Bank) replies with MT799 BPU/ICBO RWA and confirms MT760
verbiage/format.
4. The Lender (provider) bank send SBLC via MT760.
5. The Seller (beneficiary) bank pays the administrative fee (10% of Face Value) due to
the Lender (provider) account within 10 working days via MT103.
(SPECIMEN COPY – FINAL VERBIAGE AS PER ISSUING BANK STANDARD FORMAT)
ANNEXE A,
SWIFT MT799 RWA/PRE-ADVICE FROM ISSUING BANK
FROM ISSUING BANK TO BENIFICARY’S BANK
SWIFT MT 799
FROM: ISSUING BANK PLC,
ISSUNIG BANK ADDRESS
TO: THE SAUDI NATIONAL BANK
JEDDAH, MAIN BRANCH, KING ABDULAZIZ STREET, BALAD AREA, P.O.BOX 3555, JEDDAH, 13519
SAUDI ARABIA
TRANSACTION CODE: XXXXXXXXXXX
REFERENCE CODE: XXXXXXXXXXXX
WE, ISSUING BANK PLC, LOCATED AT XXXXXXXXXXXXXX,,REPRESENTED BY THE UNDERSIGNED
OFFICERS, HEREBY CONFIRM WITH FULL BANK RESPONSIBILITY AND LIABILITY ON BEHALF OF OUR
CLIENT SXXXXXXXXXXXXXXXXXXXXXX, WITH ACCOUNT NUMBER: XXXXXXXXXXXXXX, FOR THE
BENEFIT OF YOUR CLIENT SHEKHA MOHAMMED BAGHLAF COMMERCIAL EST, WITH ACCOUNT
NUMBER: SA2710000011468348000106 FOR THEIR INVOICE NUMBER 2023A2907 TO THEIR BUYERS YRS
ASSOCIATED LIMITED FOR THE DELIVERY OF THE TOTAL QUANTITY OF 1,000,000 METRIC TONNE OF
SABIC GR-60 REBAR STEEL THAT WE ARE READY, WILLING AND ABLE TO ISSUE A STANDBY LETTER OF
CREDIT (ICC 600 FORMAT) VIA SWIFT MT760 IN THE FACE AMOUNT OF THREE HUNDERD FORTY FIVE
MILLION DOLLARS ($345,000,000.00), THE LAWFUL CURRENCY OF THE UNITED STATES OF AMERICA IN
FAVOR OF YOUR CLIENT SHEKHA MOHAMMED ALI BAGHLAF COMMERCIAL EST, WITH A VALIDITY OF
ONE (1) YEAR AND ONE (1) DAY FROM THE DATE OF ISSUE.
THIS STANDBY LETTER OF CREDIT IS IRREVOCABLE, UNCONDITIONAL, NON-TRANSFERABLE,
ASSIGNABLE AND CONFIRMED FULLY CASH VALUE BACKED, AND THERE WILL BE NO LIENS AND
ENCUMBRANCES ON THIS INSTRUMENT WHICH SHALL BE DELIVERED AND AVAILED VIA SWIFT MT760.
PLEASE CONFIRM YOUR CLIENT IS READY WILLING AND ABLE TO RECEIVE AND FUND THE ADMINSTRITIVE
FEES OF THIS STANDBY LETTER OF CREDIT INSTRUMENT THE AMOUNT OF THIRTY FOUR MILLIONS
FIVE HUNDRED THOUSAND DOLLARS ($34,500,000.00) FOR TRANSFER AND CREDIT TO YOUR
CLIENT XXXXXXX OF ACCOUNT NO. XXXXXXXX, SWIFT CODE, XXXXX UPON OUR RECEIPT OF THE
CONTRACTED STANDBY LETTER OF CREDIT IN THE FACE AMOUNT OF THREE HUNDERD FORTY
FIVE MILLIONS DOLLARS ($345,000,000.00) THE LAWFUL CURRENCY OF UNITED STATES OF
AMERICA VIA SWIFT MT-760 AND THE HARD COPY RECEIVED AT THE SAUDI NATIONAL BANK LOCATED AT
KING ABDULAZIZ STREET, BALAD AREA, P.O.BOX 3555, JEDDAH, 13519 SAUDI ARABIA, BY BANK BONDED
COURIER.
THIS PRE‐ADVICE IS AN OPERATIVE INSTRUMENT, NO MAIL CONFIRMATION WILL FOLLOW. ALL CHARGES
ARE FOR THE ACCOUNT OF THE APPLICANT.
FOR AND ON BEHALF OF ISSUING BANK LOCATED AT XXXXXXXXXXXX.
AUTHORIZED BANK OFFICER 1 AUTHORIZED BANK OFFICER 2
<NAME, TITLE, PIN CODE> <NAME, TITLE, PIN CODE>
ANNEXE B,
PRE-ADVICE FROM RECEIVING BANK
MT799 RWA BPU (ANSWER BACK)
BANK PAYMENT UNDERTAKING FROM BENIFICARYS’
SWIFT MT 799
RE / TRANSACTION CODE: XXXXXXXXXXX
REFERENCE CODE: XXXXXXXXXXXX
WE, SAUDI NATIONAL BANK, LOCATED AT KING ABDULAZIZ STREET, BALAD AREA,
P.O.BOX,3555, JEDDAH, 13519, SAUDI ARABIA, UNDERTAKE WITH FULL BANKING
RESPONSIBILITY THAT ON BEHALF OF OUR CLIENT SHEKHA MOHAMMED ALI BAGHLAF
COMMERCIAL EST WITH ACCOUNT NUMBER: SA2710000011468348000106 AND FOR THEIR
INVOICE NUMBER 2023A2907 TO BUYERS YRS ASSOCIATED LIMITED FOR THE DELIVERY OF
THE TOTAL QUANTITY OF 1,000,000 METRIC TONNE OF SABIC GR-60 REBAR STEEL THAT WE
ARE READY, WILLING AND ABLE TO RECEIVE AND ACCEPT THIS STANDBY LETTER OF CREDIT
(ICC 600 FORMAT) VIA SWIFT MT760 IN THE FACE AMOUNT OF THREE HUNDERD FORTY FIVE
MILLION DOLLARS ($345,000,000.00), THE LAWFUL CURRENCY OF THE UNITED STATES OF
AMERICA WITH A VALIDITY OF ONE (1) YEAR AND ONE (1) DAY FROM THE DATE OF ISSUE AND
TO FUND THE ADMINSTRITIVE FEES OF THIS STANDBY LETTER OF CREDIT INSTRUMENT THE
AMOUNT OF THIRTY FOUR MILLIONS FIVE HUNDRED THOUSAND DOLLARS ($34,500,000.00)
FOR TRANSFER AND CREDIT TO YOUR CLIENT XXXXXXX OF ACCOUNT NO. XXXXXXXX, SWIFT
CODE, XXXXX UPON OUR RECEIPT OF THE CONTRACTED STANDBY LETTER OF CREDIT IN THE
FACE AMOUNT OF THREE HUNDERD FORTY FIVE MILLIONS DOLLARS ($345,000,000.00) THE
LAWFUL CURRENCY OF UNITED STATES OF AMERICA VIA SWIFT MT-760.
WE CONFIRM THAT PAYMENT FOR THE ADMINSTRITIVE FEE WILL BE BY WIRE TRANSFER SWIFT MT-
103/202 WITHIN TEN (10) BANKING DAYS AFTER RECEPT AND VERIFICATION OF USD 345M SBLC
VIA SWIFT MT-760 AND THE HARD COPY RECEIVED AT THE SAUDI NATIONAL BANK LOCATED AT
KING ABDULAZIZ STREET, BALAD AREA, P.O.BOX 3555, JEDDAH, 13519 SAUDI ARABIA, BY BANK
BONDED COURIER.
YOURS FAITHFULLY,
FOR AND ON BEHALF OF: THE SAUDI NATIONAL BANK
AUTHORIZED BANK OFFICER 1 AUTHORIZED BANK OFFICER 2
<NAME, TITLE, PIN CODE> <NAME, TITLE, PIN CODE>
ANNEX C
MT760 APPROVED VERBIAGE FROM ISSUING BANK
BG/SBLC Format via SWIFT MT-760
Start Transmission----------------------------------------------------------------------------------------
-------
Date: XX.XX.17 Reprint From Local Swiftacks ____________________________
MTT Tome: XX: XX:XX GMT +0
SRC RTE: ______________
DTN RTE: ______________
MSG TYPE: 760
----------------------------INSTANCE TYPE AND TRANSMISSION-----------------------------
Notification (TRANSMISSION) : OF ORIGINAL SENT TO SWIFT/FAX/TELEX
(ACK)
Network Delivery Status : NETWORK ACK
Priority : URGENT
Correspondent Input Reference : ________________________________________
Correspondent Output Reference : ________________________________________
Swift Input : MT 760 STANDBY LETTER OF CREDIT (SBLC)
Sender :
Receiver :
----------------------------------------NARRATIVE--------------------------------------
F27 : Sequence of Total
X/X
F20 : Transaction Reference Number
X___________________________
F30 : Issue Date
XX/XX/24
Maturity Date
XX/XX/25
F40C: Applicable Rules
URDG.
F77C: Details of Standby Letter of Credit (SBLC)
SBLC NO: ________________
APPLICANT: _________________
BENEFICIARY: SHEKHA MOHAMMED ALI BAGHLAF COMMERCIAL
COMPANY
ADVIRTISING BANK: ______________________
CURRENCY: US DOLLARS ($)
FACE AMOUNT: 345,000,000.00
LATEST DATE FOR CLAIMS: “EXPIRY DATE” ONE (1) YEAR ONE (1) DAY
FROM DATE OF ISSUE
Sender’s Reference
50A: account with Institution
*** BANK NAME: _____________________
*** BANK ADDRESS:
*** ORDERING CUSTOMER: ___________________________________
*** ACCOUNT/IBAN NUMBER: ________________________________
*** SWIFT CODE:
F57 Receiver BIC:
*** BANK NAME: SAUDI NATIONAL BANK
*** BANK ADDRESS: KING ABDULAZIZ STREET, BALAD AREA, P.O.BOX 3555, JEDDAH,
13519, SAUDI ARABIA
*** ACCOUNT/IBAN NO: SA2710000011468348000106
*** ACCOUNT NAME: SHEKHA MOHAMMED ALI BAGHLAF COMMERCIAL COMPANY
*** BANK OFFICER: RISK MANAGEMENT OFFICER
*** SWIFT CODE: NCBKSAJE101
F79 : NARRATIVE DESCRIPTION OF ORIGINAL MESSAGE
IRREVOCABLE STANDBY LETTER OF CREDIT NO: _____________________
WE (**ISSUING BANK NAME**) OF ADDRESS (**BANK ADDRESS**) AT THE REQUEST OF
( **APPLICANT NAME** ) HEREINAFTER THE APPLICANT HEREBY ESTABLISH OUR
UNCONDITIONAL IRREVOCABLE CONFIRMED STANDBY LETTER OF CREDIT AT SIGHT
NO.XX DATED XX MAY 2024 WITHOUT PROTEST OR NOTIFICATION WITH OUR FULL
RESPONSIBILITY ON FAVOR OF SHEKHA MOHAMMED ALI BAGHLAF COMMERCIAL
COMPANY HEREINAFTER THE BENEFICIARY UNDERTAKE AND GUARANTEE TO PAY TO
YOU AT SIGHT FOR ANY RECEIPT OF YOUR CLAIM, ANY SUM OR SUMS AGAINST THIS
STANDBY LETTER OF CREDIT NUMBER (**XXXX**) DATED (***XXXX***) NOT
EXCEEDING AN AGGREGATE AMOUNT OF USD 345,000,000.00 (THREE HUNDRED
AND FORTY FIVE MILLIONS) IN THE LAWFUL CURRENCY OF THE UNITED STATES AS
SECURITY FOR THE DELIVERY OF THE TOTAL QUANTITY OF 1,000,000 METRIC TONNE
OF SABIC GR-60 REBAR STEEL AS PER THE SIGNED CONTRACT NUMBER 6050-
2023A2970 DATED JANUARY 25TH, 2024 BETWEEN BENEFICIARY AND YRS
ASSOCIATES LIMITED WHICH IS AVAILABLE FOR PAYMENT AT SIGHT AND AT OUR
COUNTERS.
THIS STANDBY LETTER OF CREDIT IS NEGOTIABLE, IRREVOCABLE, UNCONDITIONAL,
NON-TRANSFERABLE, ASSIGNABLE, CALLABLE AND CONFIRMED FULLY CASH VALUE
BACKED, AND THERE WILL BE NO LIENS AND ENCUMBRANCES ON THIS INSTRUMENT.
THIS STANDBY LETTER CREDIT IS SUBJECT TO THE UNIFORM RULES FOR THE
STANDBY LETTER CREDIT UNDER ICC PUBLICATION NO. 600/758
WE HEREBY ENGAGED YOU THAT ANY LEGALIZED AND CERTIFIED COPIES OF
SHIPPING DOCUMENTS PRESENTED TO YOU BY BENEFICIARY ALONG WITH THEIR
WRITTEN STATEMENT CERTIFYING THAT YRS ASSOCIATED LIMITED HAS FAILED TO
PAY SUM OR SUMS NOT EXCEEDING AN AGGREGATE AMOUNT OF USD 345,000,000.00
WILL BE DULY HONORED BY US WITHIN 7 BUSINESS DAYS FROM THE DATE OF
BENEFICIARY'S CLAIM IF PRESENTED IN ACCORDANCE WITH THE TERMS AND
CONDITIONS STATED IN THIS STANDBY LETTER OF CREDIT SUCH STATEMENT MUST
BE ACCOMPANIED BY THE FOLLOWING SHIPPING DOCUMENTS COPIES
• COPY OF CLEAN BILL OF LADING
• CERTIFICATE OF MARINE INSURANCE
• COPY OF UNPAID COMMERCIAL INVOICE
• COPY OF CERTIFICATE OF ORIGIN
• COPY OF SGS Q&Q INSPECTION CERTIFICATES
• COPY OF PACKING LIST
• CUSTOMS CLEARANCE DOCUMENT AT THE LOADING PORT
ALL DOCUMENTS MUST BE LEGALIZED BY THE SAUDI COMPETENT AUTHORITES
ALL ISSUING BANK CHARGES ARE ON BENEFICIARY'S ACCOUNT
OUR LIABILITY UNDER THIS STANDBY LETTER OF CREDIT SHALL BE REDUCED BY ANY
AMOUNTS PAID BY YRS ASSOCIATED LIMITED IN ACCORDANCE WITH THE TERMS
HEREOF. OUR LIABILITY IS VALID AS AT ******* AND SHALL EXPIRE ON ( / / 2025)
EXCEPT IN RESPECT OF ANY WRITTEN DEMANDS FOR PAYMENT COMPLYING WITH
ALL REQUIREMENTS HEREOF RECEIVED BY US AT OUR COUNTERS ON OR BEFORE /
/2025 AFTER WHICH DATE OUR LIABILITY TO YOU UNDER THIS LETTER OF CREDIT
WILL BE CEASE AND WILL BE OF NO FURTHER EFFECT WHETHER THIS INSTRUMENT
IS RETURNED TO US OR NOT
THIS IS AN OPERATIVE INSTRUMENT AND NO MAIL CONFIRMATION WILL FOLLOW.
_____________________ _______________________
Authorized Signatory Authorized Signatory
Bank Officer Bank Officer
Title Title
