An LC mechanism is quite old. It has been tested on many occasions. There is a well established practice as well as rules to be attached (e.g., UCP600, ISP98) but when negotiating an LNG MSPA are you aware of all links and interplays between commercial contract clauses and LC provisions. LC is not the only type of credit support provision/risk mitigant, it could be parent company guarantee, bank guarantee, surety bond. Also, it is useful to understand what are credit and political insurance options one has when structuring an LNG deal. Is it a replacement to an LC?
Some major topics covered in the webinar:
-major types of credit support provisions/risk mitigants explained: stand-by LC, commercial LC, parent company guarantee, bank guarantee, surety bond
-bid bonds to be issued by a bank in the country of your counterparty (counter-guarantee structures)
-bad wordings of LC provisions
-what kind of risks/obligations could be covered by an LC - (non-payment event, ToP)
-Does your bank distinguish between performance and financial guarantees? Why is it important to know?
-Credit and political risks insurance: how can it help to boost trading volumes and improve cash profile? Why to talk about insurance in teh context of LCs
-Are there any FM clauses in the LCs?
-Case study 1: Structuring a short term deal in LNG.
-Case study 2: LCs with multiple beneficiaries - new fashion or new norm?
We invite business developers, commercial managers, logistics, operations and settlement practitioners, treasury people, lawyers, relationship bankers, insurance practitioners.
Please check your time zone:
@ 9:30 am in London
@ 12:30 pm in Dubai
@ 4:30 pm in Singapore
Course Duration: 2 Hours
2 CPD credits Industry Certificate