Notice. Advisory and arranging services only. We are not a bank or a guarantor. Proposals depend on KYC/AML, issuer approvals, eligibility, collateral and controls, and definitive documentation.
ISP98 Standby LC Structuring & Issuance Support
We help companies secure Standby Letters of Credit under ISP98 or UCP600. The mandate covers wording and rules alignment, issuer shortlist, collateral and account controls, term negotiation, and closing. We manage the process from screening to issuance and renewal.
Open Client IntakeOn This Page
Scope Of Services
Structuring
- Purpose fit: bid, performance, advance payment, payment standby
- Ruleset selection and wording under ISP98, UCP600, or URDG758
- Drawing conditions, presentation checklist, and specimen text
Issuer & Controls
- Issuer shortlist by jurisdiction, rating, limits, and appetite
- Collateral pathway, account control, and waterfall design
- Confirmation or counter guarantee where required
Closing & Renewals
- Conditions precedent, legal opinions, and insurance checks
- Evergreen and extension mechanics with covenant tracking
- Amendments, substitutions, and claim management support
Eligibility And Data Room
Baseline Profile
- Operating company with audited or reviewed financials
- Clear standby purpose tied to contract or statutory requirement
- Acceptable collateral or credit enhancement pathway
- Corporate authorities and signatories in good order
Core Documents
- Financials, bank statements, debt schedules
- Underlying contract or tender and beneficiary instructions
- Draft wording and preferred ruleset
- KYC pack, corporate documents, board resolutions
- Collateral and insurance evidence where applicable
Checklist is issued at intake. Execution begins when core items are complete.
Products And Indicative Terms
| Bid Bond Standby | Tenor to award. Callable on compliant presentation. Often unsecured for strong credits. |
| Performance Standby | Tenor aligned to completion. Collateralized or counter guaranteed. Step-downs on milestones where agreed. |
| Advance Payment Standby | Secures mobilisation or prepayment. Reduces against delivery certificates. Assignment of proceeds optional. |
| Payment Standby | Supports settlement. Presentation against invoice set and transport documents per Incoterms 2020 where relevant. |
| Confirmed Standby | Added confirmation for beneficiary policy or higher risk jurisdictions. |
| Counter Guarantee | Home bank provides counter guarantee to issuing bank in beneficiary country subject to interbank terms. |
| Rules & Standards | ISP98 primary for standbys. UCP600 or URDG758 where specified by beneficiary. ICC opinions referenced as needed. |
| Size & Tenor | USD 1m to USD 250m typical. Tenor 3 to 36 months with evergreen or extension clauses subject to approvals. |
| Collateral & Pricing | Cash, securities, or acceptable collateral. Fees set by issuer credit committee. Third-party costs pass through. |
| Documentation | Application, indemnity, security documents, account control, legal opinions, insurance endorsements, CP schedule. |
Illustrative only. Final terms are set by the issuing bank after underwriting and approvals.
Execution Approach
Workstreams
- Screening of purpose, wording, and beneficiary requirements
- Issuer shortlist and indication of terms
- Credit, legal, and security due diligence
- Approvals, CPs, issuance, and monitoring
Risk Controls
- Account control and collateral perfection
- Specified drawing conditions and presentation checks
- Sanctions and AML screening for counterparties
- Tripwires for extensions, reductions, or cancellation
Send the standby purpose, draft wording, beneficiary requirements, and financials. We will revert with an issuance route and conditions to close.
Open Client IntakeFAQ
Do you issue Standby LCs?
No. We act as an advisor and arranger. Issuance is performed by regulated banks after their underwriting and approvals.
Which rules apply to Standby LCs?
ISP98 is the default for standbys. Some beneficiaries request UCP600 or URDG758. We align the wording to the specified ruleset.
What collateral is usually required?
Cash or marketable securities are common. Alternatives depend on issuer appetite, security perfection, and the applicant credit profile.
Can you arrange confirmations or counter guarantees?
Yes. Where jurisdiction or beneficiary policy requires added comfort we source confirmations or interbank counter guarantees.
How long does issuance take?
Timing depends on data room completeness, approvals, and collateral readiness. A complete checklist shortens the cycle.
What are your fees?
Engagements are retained on a best efforts basis with a success fee at issuance. Issuer fees and third party costs are paid by the client.
Disclosures. FG Capital Advisors provides advisory and arranging services. No guarantee of approvals, pricing, timing, or capacity. All proposals are subject to eligibility, documentation, collateral, and issuer approvals.
