Selective Financial Services | We support Project Finance | Back to Back Solutions | Financial Collateral and Receiving Banks
We lend highly rated Securities in the format of an SBLC or BG to back up your Credit Line enabling Liquidity and Project Finance also through back-to-back transactions. If you are qualified, we can provide all the collateral you need and send it to
• a monetizer for cash
• a commodity trader or Oil or Gas supplier
• a trade platform
You can issue your own bank instruments on the back of a borrowed financial instrument which we will send to your own bank.
If you receive a valid financial instrument in your own bank, you should be able to issue your own bank instruments on the back of the instrument that you received. This works perfectly and you can have a back-to-back instrument issued, if you have a relevant banking relation since our financial instrument sent to your bank is fully cash backed, issued by a prime bank, and if it is divisible and assignable.
Back to back instruments are referred to as auxiliary letter of credit or sub-letter of credit. The term back-to-back Credit or Secondary Credit is used in the USA, Countervailing Credit, Counter Credit is used in Great Britain, and Credit Dos-à-Dos Contre-Credit is used in France.
In a commercial transaction, a back-to-back letter of credit usually involves two letters of credit to secure financing for a single transaction, involving an intermediary between the buyer and seller.
Back-to-back letters of credit are legally considered two separate LCs which are used to finance and to materialize a single transaction involving three parties, an intermediary (PARTY B) between the end buyer(PARTY A), and the actual supplier of the product or service (PARTY C).
A back-to-back LC is opened on the back of a guarantee instrument (the original letter of credit) an intermediary trader or seller may have received from his direct client.
But a back to back transaction can also be a strictly financial transaction. You can issue your own instrument and send it to a monetizer or funder!
The instruments generated on the back of highly rated, publicly listed securities and made available to qualified clients on the basis of a Securities Borrowing and Lending Agreement and are emitted on a standard verbiage which confirms the instrument to be
• fully cash backed
This is the ideal scenario for a beneficiary to receive the instrument at his own bank, and then, on the back of it, issue own bank instruments for commercial or financial transactions, as may be required to suppliers, to secure long term commodity contracts, or to a trade platform to participate in high yielding investments, or in smaller increments to several parties requiring a guarantee instrument for transactions you want to conduct with them.