Foreign Guarantees

(Inward- For Local Beneficiary; Outward- For Local Applicant)

A bank undertaking to answer for the payment on another person’s debt or obligation in the event of a default by the person primarily responsible for it. Standby Letters of Credit (SBLC) is an LC standing by for the day of default. It share similar features with Documentary LC but unlike LC, the bank obligation would crystalize only after default by the Applicant.

There are many types of guarantees and SBLC depending on the transaction dynamics. Types include Advance Payment Guarantee/SBLC; Performance Guarantee/SBLC; Counter Guarantee/SBLC.

RULES: International Rules guiding Demand Guarantee and SBLC are URDG758 and ISP98 respectively.

Benefits / Outward Guarantee/Sblc:

  • Flexibility – Guarantee or SBLC nature is very flexible and can be issued in line with the transaction dynamics.
  • It is relatively less expensive when compared to LC and BC.
  • Instruction to Issue guarantee.
  • All regulatory conditions must be fully complied with.
  • Applicant Credit Worthiness Would be considered.


Kindly note that terms and conditions apply.

Benefits of Our Foreign Guarantees


Suitable to meet the dynamics of any business you wish to transact.

Cost Effective

Very cost effective when compared with LC and BC

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