FORMAT - IRREVOCABLE STANDBY LETTER OF CREDIT FOR PERFORMANCE PAYMENT

Date:

To:

[Insert ADVISING BANK NAME AND ADDRESS with contact person details]

Sub:Irrevocable Standby Letter of Credit No………… amounting to [insert SBLC value in figures]…………….in respect of Purchase Order No. …………….. dated …………….(“PO”) towardsPerformance for……………………[Insert Project Name of Essar].

We, [Insert the name Issuing Bank name and address]…………………………………hereby issue our irrevocable Standby-Letter of Credit No. ……………………………., ("Standby L/C"), as follows:

SBLC Amount:………………………(insert SBLC amount in figure and words)

Date of expiry and place:………………………. Mumbai, India

Beneficiary:Essar Projects (India) Limited, Equinox Business Park (Peninsula Techno Park), off Bandra Kurla Complex, LBS Marg, Kurla West, Mumbai - 400070 , Maharashtra, India

Attn: Ms. Juliana D’Souza, Email:

Applicant:[Name and address of the Seller with contact person details]

Concerning:The due fulfillment of the Applicant's obligations towards performance against the said PO for an amount of ………………..[insert SBLC Amount in figures] representing ………….% of………………….[ insert the total valueor basic value of the said PO]in connection with supply of…………………[short description of material as per PO] in terms of the PO.

This Standby L/C is available with …………………….[Insert Advising Bank’s name & address]by sight payment in one or more drawings, against presentation of the following document(s):

  • Beneficiary's manually signed and appropriately completed declaration, stating that:

"We,Essar Projects (India) Limited, Equinox Business Park (Peninsula Techno Park), off Bandra Kurla Complex, LBS Marg, Kurla West, Mumbai - 400070 , Maharashtra, India, under the Irrevocable Standby Letter of Credit no………………..with respect to said Purchase Order no…………..dated...... for …………………[Insert Total PO value](“PO”)hereby demand payment of [ insert SBLC amount in figures ]…………… from ……………………..[Insert Name and address of Issuing Bank in Mumbai, India], under the aforementioned Standby Letter of Credit, which represents a sum due to us from …………………………..[Insert Applicant’s name](“Applicant”), as the Applicant has failed to fulfill his contractual obligations under the said PO."

Documents presented under this Standby L/C have to be issued in English Language.

Instructions to the Advising Bank:

Please advise this Standby L/C to the Beneficiaryaddressed to Ms. Juliana D’Souza, Manager, Essar Projects (India) Limited, Equinox Business Park (Peninsula Techno Park), off Bandra Kurla Complex, LBS Marg, Kurla West, Mumbai - 400070 , Maharashtra |, India |, Mob. 91 9819731628 Email:

All banking charges in India are for the account of the Beneficiary.

Reimbursement Instructions:

Four (4) bank working days after your SWIFT advice confirming that you have received a complying presentation and sent relative document(s) to us by courier service.

Documents are to be sent to:

……………………………………………………[Insert Advising Banks name with RTGS details].

This Standby-L/C is subject to the Uniform Customs and Practice for Documentary Credits (2007) Revision International Chamber of Commerce (ICC) Publication No. 600.

This is an operative instrument and no mail confirmation will follow.

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