Capability 04 of 10

DLC / SBLC Trade Instrument Reassignment — Africa Trade Gateway

Need to use an LC or SBLC issued by an African bank for an international trade transaction?

A container ship alongside the quay at Jebel Ali port at sunriseInternational Commodity Trade FacilitationInstruments that move trade
Overview

Need to use an LC or SBLC issued by an African bank for an international trade transaction? International suppliers often hesitate to accept instruments issued directly by African banks, or require costly Tier-1 confirmation. We assess the instrument and transaction structure, then arrange an Assignment of Proceeds (AOP) through UAE banking partners — preserving your existing banking relationships.

Download Africa Trade Gateway Overview

What this route delivers

  • No change required to existing banking relationships
  • Compliance screening, verification, and instrument acceptance
  • Full transaction management: structuring, contract administration, supplier onboarding, documentary compliance
  • Every transaction subject to KYC, AML, CTF, international screening, and ICC UCP 600 where applicable
Key Parameters

Key parameters at a glance

Indicative parameters only. Actual terms are subject to assessment, documentation and the relevant financing institution's approval.
Assignment of Proceeds Cost
0.30% – 0.50% of transaction value
Eligible Instruments
MT700 DLC, MT760 SBLC (annual contracts), Bank Guarantees, Bank Comfort Letters
Eligible Commodities
Crude oil, EN590 diesel, jet fuel, LPG, metals, agri & industrial commodities

You don't need a complete package to start. Submit the basic transaction details first — we'll tell you what additional documents are required.

Who It Suits

Is this suitable for you?

This may be suitable if you have:

  • Trade instrument (MT700 DLC, MT760 SBLC, guarantee) issued by an African bank
  • Established commodity trading relationship and contract
  • International supplier requiring enhanced payment assurance
  • Transaction and counterparties able to pass KYC/AML screening
  • Instrument value and tenor within program parameters

Final eligibility depends on transaction assessment and the relevant financing institution.

What We Need From You

What we'll typically ask for

For a first review, we'll typically ask for:

  • Copy of the trade instrument (MT700/MT760) or issuing bank details
  • Sale and purchase contract with the counterparty
  • Company and beneficial ownership (KYC) documents
  • Shipment and commodity specifications

Additional documents may be requested after the initial assessment.

Mechanism

How the Structure Works

  1. Step 01

    African Bank

    Issues a Documentary LC (MT700), SBLC (MT760), or other acceptable instrument.

  2. Step 02

    Epiidosis

    Acts as contractual seller and trade facilitation partner.

  3. Step 03

    Instrument Review

    Compliance screening, verification, and acceptance.

  4. Step 04

    Assignment of Proceeds

    Arranged through a UAE banking partner, subject to approval.

  5. Step 05

    International Supplier

    Receives enhanced payment assurance from the UAE banking partner.

  6. Step 06

    Shipment of Goods

    Supplier ships the contracted commodity.

  7. Step 07

    Compliant Documents

    Presentation of compliant shipping documents.

  8. Step 08

    Payment & Settlement

    Settlement to the supplier per the AOP and transaction documents.

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