Letters of credit

Letter of Credit (Documentary Credit or L/C) is a method of payment which constitutes an irrevocable undertaking of the Bank to make a payment against the Beneficiary’s presentation of documents complying with the terms and conditions of a Letter of Credit.

Banca Intesa handles all types of Letters of Credit applied in international and/or Russian banking practice including:

  • Letters of Credit available by payment at sight (Sight Letter of Credit)
  • Letters of Credit available by deferred payment (Letter of Credit with Deferred payment) and others.

Banca Intesa provides the following types of operations under Letter of Credit:

  • Issuance of Import Documentary Letters of Credit (including Letters of Credit confirmed by Russian or foreign banks);
  • Advising of Export Documentary Letters of Credit received from Russian or foreign banks;
  • Acting as a Nominated Bank and Confirming Bank under Export Letters of Credit issued by Russian and foreign banks (subject to the sufficient inter-bank limit).

Main advantages of Documentary Credits:

For the Exporter/ Seller:

  • Absence of Importer/ Buyer credit risk (Payment execution is secured by the Bank)
  • Double assurance of payment execution in case of Confirmed Letter of Credit
  • Mitigation of risk that the Importer/Buyer won`t accept the delivered goods or services provided
  • Goods or services as provided enhanced competitive strength through application of trade finance instruments

For the Importer/Buyer:

  • Assurance of purchased goods shipment or services are received in due time as well as timely preparation of documents for customs clearance procedures ;
  • Opportunity to conclude contracts on more comfortable economic terms (price, payment period, etc.)
  • Opportunity to monitor each project stage performance
  • Alternative to advance payment
  • Opportunity to receive financing from the Bank for effecting payments under L/C.

COST OF LETTER OF CREDIT* FOR CLIENTS OF BANCA INTESA

Banca Intesa commissions and charges
Other bank commissions and charges
  • Confirmation fee (applied for LC tenor):
  • Deferred payment fee (If LC is available by deferred payment)
  • Other bank charges and commissions in accordance with the Rates offered by the bank participating in an LC transaction

* L/C structure as well as amount of bank charges depend on the terms and conditions of the corresponding concluded agreement on L/C issuance and financial standing of the Client


PDF Presentation - Trade Finance and Documentary operations

Rates

PDF Rates for cash and settlement services to corporate customers (legal entities and private entrepreneurs)

Contact details

For getting more information in relation to Trade Finance and/or Documentary operations please send your request to the following email address: trade_finance@bancaintesa.ru

 

 

 

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