Standby Letters of Credit for Project Finance
We help you get the right standby in place, on wording the beneficiary accepts and on terms that fit the rest of your financing plan.
Start Client IntakeWho This Is For
Developers and sponsors of energy, infrastructure, mining and industrial projects who must post a standby letter of credit (SBLC) for a tender, concession, power purchase agreement, EPC contract or lender reserve, and who need the instrument in place before a deadline.
What FG Capital Advisors Does
- Bid security and concession support.
- EPC performance and advance payment support.
- Offtake and PPA credit support.
- Debt service reserve standbys in place of cash reserves.
- Wording under ISP98 or UCP 600, bank-ready files and the approach to issuing banks, with collateral or margin options where lines are limited.
How The Process Works
Submit the requirement through our intake. We assess it, and where it fits our scope we issue a written proposal. Once engaged, we build the file, run the bank approach and coordinate wording and issuance. Our article on four ways an SBLC supports project finance explains each use. For the debt side, see non-recourse project finance loan structuring.
What To Send In The Intake
The project summary and stage, the document requiring the SBLC (tender, PPA, EPC contract or term sheet), amount, beneficiary, expiry, sponsor financial statements and the collateral or bank lines available.
Related Services and Guides
Start Your Client Intake
Send the details through our client intake. We review every submission and reply in writing with next steps. LC, guarantee and facility approval, pricing and issuance remain subject to bank or lender review, KYC, AML, sanctions screening, credit approval and documentation. No outcome is guaranteed.
Start Client IntakeFrequently Asked Questions
Why do project developers need standby letters of credit?
Tender authorities, offtakers, EPC counterparties and lenders often require bank-backed security instead of a corporate promise or cash.
Can an SBLC replace a cash debt service reserve?
Many lenders accept a standby from an acceptable bank in place of a funded reserve, if the facility agreement allows it.
Do I need collateral for a project SBLC?
Usually the issuing bank needs credit lines, collateral or margin. We look at the options available for your project and sponsors.
