STAND BY LETTER OF CREDIT (SBLC)

Dear Sir / Madam,

According to the request for the sale of a Banking Instrument – SBLC/BG, I inform you of the
procedures:

We can offer the following alternatives.

ALTERNATIVE NO. 1

INSTRUMENT DESCRIPTION

1) Instrument: Stand by Letter of Credit (SBLC) or Bank Guarantee (BG), Backed by

Financial Assets MTN/UK.

2) Issuing Bank: HSBC (Jersey Islands) or UBS Switzerland.

3) Nominal Value: Preferably US$ 100m to 500 million, or other requested amount
Minimum 10m

4) Term: 1 year + 1 day – New Cut

5) Delivery: Bank to Bank

6) Copy: Mail within 7 business days

PAYMENT IN 3 DAYS OF SALE

a) Payment procedure after receiving the instrument.

i. Sales value: 26+2% of the nominal value
ii. Leasing value: 6+2% of the nominal value

b) Emission rate: 0 (zero)

c) Payment deadline: 72 hours from receipt – The Sale payment date begins when the
customer receives the SBLC at their bank.

d) Direct issuance to a third party (beneficiary) will require insurance payment.

PROCEDURES

1. CIS + Council Resolution + RWA/BCL

2. Signing of the Sales Contract or Rental Agreement

3. Sending the Contract to the bank

4. The issuing bank sends mt 799 to the issuing receiving bank via SWIFT
communication advising of the sending of a mt 760.

5. The receiving bank sends RWA/BCL to the issuing bank via SWIFT communication,
we ask to be sure of capacity on the day. (bank to bank)

6. Issuing bank responds with the wording of the guarantee to the receiving bank

7. The receiving bank responds with I agree and that the funds for sale payment is
blocked

8. Issuing bank issues, the guarantee

9. 72 hours after receiving the guarantee, the receiving bank unlocks the funds related
to the sale.

Proof of funds is a crucial step in the process of issuing and transferring a Standby Letter of
Credit (SBLC). It serves as a guarantee that the buyer or lessee has the financial resources
necessary to honour the commitment. In the case of remittance to a third party, it is important
that the transfer is made directly from the buyer or lessee’s bank to the ultimate beneficiary. If
the insurance is paid, the SBLC can be sent directly to the third party’s bank account, thus
ensuring that the financial interests of all parties involved are protected.

ALTERNATIVE NO. 2

LONGER PAYMENT TERM – 20 BUSINESS DAYS

Insurance payment procedure, for a longer payment period for the instrument sale.
● Payment procedure after receiving the instrument.
II. Sales value: 28+2% of the nominal value
III. Leasing value: 8+2% of the nominal value
Insurance: € 300.000

The premium is for the costs of cancelling and redeeming the asset

Payment for insurance and issuance fees will be paid in contract to the issuer.

PAYMENT TERM

Up to 22 business days after confirmation at the bank – The Sale payment date begins when the
customer receives the SBLC at their bank

PROCEDURES

1. CIS + Council Resolution

2. Signing of the Sales Contract

3. Sending the Contract to the bank

4. The issuing bank sends mt 799 to the issuing receiving bank via SWIFT
communication advising of the sending of a mt 760.

5. The receiving bank sends RWA/BCL to the issuing bank via SWIFT communication,
we ask to be sure of capacity on the day. (bank to bank)

6. Issuing bank responds with the wording of the guarantee to the receiving bank

7. The receiving bank responds with I agree and that the funds for sale payment is blocked

8. Issuing bank issues, the guarantee

9. Up to 20 business days after receiving the guarantee, the receiving bank issues
payment for the sale to the issuing bank.

Proof of funds is a crucial step in the process of issuing and transferring a Standby Letter of
Credit (SBLC). It serves as a guarantee that the buyer or lessee has the financial resources
necessary to honour the commitment. In the case of remittance to a third party, it is important
that the transfer is made directly from the buyer or lessee’s bank to the ultimate beneficiary. If
the insurance is paid, the SBLC can be sent directly to the third party’s bank account, thus
ensuring that the financial interests of all parties involved are protected.
 ANEXO I
BANK COMFORT LETTER (BCL)
READINESS, WILLINGNESS AND ABILITY (RWA)

- To be completed on buyer's bank letterhead -

CONFIRMATION OF FUNDS CERTIFICATE

EXAMPLE SBLC 500 M

Date:
BANK NAME:
ADDRESS:
TELEPHONE:
FACSIMILE:
SWIFT:
TELEX:
ROUTING #:
ACCOUNT NUMBER:
ACCOUNT NAME:

WE, THE UNDERSIGNED BANK OFFICERS, HEREBY CONFIRM WITH FULL RESPONSIBILITY THAT
THE AMOUNT OF US $ FOURTY MILLIONS OF (UNITED STATES DOLLARS 40, 000,000.OO) IS
RESERVED IN THIS BANK AT THE REQUEST OF OUR CLIENT (CLIENT'S NAME)
WITH READINESS, WILLINGNESS AND ABILITY (RWA) FOR THE FINALIZATION OF CONTRACT
FOR THE LEASE OF THE SBLS (LEASED SBLC) OF AMOUNT 500.000.000.OO (FIVE HUNDRED
MILLION 0F DOLLARS WITH R&E.
THESE FUNDS ARE AVAILABLE FOR THE LEASE OF THE ABOVE IDENTIFIED LEASED SBLC.
IN ISSUING THIS STATEMENT, THE BANK RECOGNIZES THEIR LIABILITY IN ACCORDANCE
WITH THE TERMS OF THE CONTRACT SHOULD IT PROCEED.
 ANEXO II
SWIFT MT760 DELIVERY SBLC
VERBIAGE TEXT RECEIVER’S BANK DETAILS :

BANK NAME :
BANK ADDRESS :
SWIFT CODE :
ACCOUNT NAME :
ACCOUNT NUMBER :
BANK OFFICER :
SENDER’S BANK DETAILS :
BANK NAME :
BANK ADDRESS :
BANK ACCOUNT NAME :
BANK SWIFT CODE :
BANK ACCOUNT NO. :
BANK OFFICER :
SBLC DETAILS :
BANK GUARANTEE No. :
CURRENCY :
AMOUNT :
DATE OF ISSUE :
DATE OF MATURITY :
PLACE OF ISSUE :
BENEFICIARY :
TRANSACTION CODE :
FOR VALUE RECEIVED, WE, HSBC BANK PLC, WITH REGISTERED ADDRESS AT 15-17
KING ST, ST HELIER, JE2 4WF, UNITED KINGDOM, HEREBY IRREVOCABLE AND
UNCONDITIONALLY , WITHOUT PROTEST OR NOTIFICATION ,PROMISE TO PAY AGAINST
THIS STANDBY LETTER OF CREDIT ON FIRST DEMAND , TO THE ORDER OF < > OR
HIS ASSIGNS , THE BEARER OR HOLDER HEREOF, THE SUM OF _______ MILLION
DOLLARS ($__0,000,000.00), UPON PRESENTATION AND SURRENDER OF
THIS GUARANTEE AT OUR OFFICES IN HSBC BANK PLC AT MATURITY DATE IN ONE
YEAR AND ONE DAY FROM <DD/MM/YEAR >
SUCH PAYMENT SHALL BE MADE WITHOUT SET OFF, FREE AND CLEAR OF ANY
DEDUCTION OR CHARGED, FEES, OR WITHHOLDINGS OF ANY NATURE AND BEING THIS
GUARANTEE VALID UNTIL ONE YEAR AND ONE DAY. AFTER MATURITY DATE AND
EXPIRES AUTOMATICALLY AND IN FULL IF YOUR WRITTEN REQUEST FOR PAYMENT
MADE BY SWIFT OR TESTED TELEX MESSAGE IS NOT IN OUR POSSESSION ON OR
BEFORE THAT DATE.
THIS STANDBY LETTER OF CREDIT IS CASH-BACKED, TRANSFERABLE, ASSIGNABLE
AND DIVISIBLE WITHOUT PRESENTATION TO US OR PAYMENT OF ANY TRANSFER OR
ASSIGNABLE OR DIVISIBLE FEE.
THIS STANDBY LETTER OF CREDIT IS SUBJECT TO THE UNIFORM RULES FOR DEMAND
GUARANTEE OF THE INTERNATIONAL CHAMBER OF COMMERCE (PUBLICATION NO. 600)
AND ANY DISPUTE ARISING THERE FROM SHALL BE SETTLED EXCLUSIVELY BY THE
ICC INTERNATIONAL COURT OF ARBITRATION (PARIS FRANCE).
THIS CABLE IS AN OPERATIVE INSTRUMENT, ALL CHARGES ARE FOR THE ACCOUNT
OF THE APPLICANT.
THIS LETTER OF GUARANTEE EXPIRES ON <DD/MM/YEAR >
HSBC BANK PLC, WITH REGISTERED ADDRESS AT 15-17 KING ST, ST HELIER, JE2
4WF, UNITED KINGDOM

AUTHORIZED BANK OFFICER 1 AUTHORIZED BANK OFFICER 2

<NAME, TITLE, PIN CODE> <NAME, TITLE, PIN CODE>

SWIFT is the ‘Society for Worldwide Interbank Financial
Telecommunication’
StandBy Letter of Credit is a written commitment by a bank that issues
it to pay a certain amount of money on behalf of the bank's client in
favor of a beneficiary in the event that the client/buyer is unable to
fulfill his/her financial obligation to the beneficiary/seller.
Using a StandBy LC in commercial transactions is an indication of good
faith and proof of a buyer's credibility and financial capabilities.
While a “Letter of Credit” is a promise of payment (usually short-term),
where a bank guarantees that the seller will receive the money promised
by the buyer, within the agreed time and amount. Ensuring that the buyer
pays the seller.
The SBLC is guaranteed by the bank itself. It guarantees, with its own
resources, that the seller will be paid when it fulfills the established
terms.
It provides additional security to the seller, since the bank's
credibility often exceeds that of the buyers. In this sense, an SBLC
creates a bank obligation.
The bank obligation generated through the SBLC generates a highly
reliable instrument, especially if it is issued by a high-standard bank.
This means that the bank that issued this instrument is responsible for
its payment. This obligation usually has a term of 1 year. This
instrument has a high market value and can be used for monetization.

DOCUMENT NOT AUTHORIZED FOR EDITING

CONFIDENTIALITY
In the event that any confidential information is exchanged between the
Parties resulting from negotiations on the Terms and Conditions of this
Letter, both parties must agree to make all necessary efforts to keep
all information confidential.
NEGOTIATION
The Parties agree to enter into negotiations on the Terms and Conditions
of this Letter. After sending the POF by the Recipient, the Sender will
send the contractual agreement for consideration and approval by both
Parties.
Leaving all good and hoping that this is just the starting point for a
successful business relationship between the Parties.
Presentation of Prices and Conditions above, are models sent by the
person responsible for the operation with the institution, being the
sole responsibility of these companies, prices are always readjusted on
the same day.
After receiving the initial documentation, the contracts will be sent
via email between the issuing and receiving companies.

I am at your disposal for any questions.

God and the universe are to our favour