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The Letter of Credit (L/C) is a commitment of the Bank, undertaken at a Customer's request, to pay to a beneficiary for supplied good or services to the Bank's Customer. The Letter of Credit specifies which documents have to be send to the importing party (usually custom duty related), The documents are send frim the exporter to the importer using both the exporter bank and the importer bank. Both banks are responsible to check correctness of the documents, in all regulatory requirements under international conventions and terms stated in the specific L/C..

  • Increased safety for International Commerce, for both importers and exporters

Fees, Commissions and Expenses for issuance of Letters of Credit are :

  • ​Opening, transfer, extension, value increase, negotiation and other modifications;
  • Operating expenses. 
  • Details are contained in the Bank's Price Schedule available online and at any of the Bank´s Branch.

     

     

     

    The Letter of Credit (L/C) has 2 different usage: it is simultaneously a guaranntee and a mean of payment. The issuance of a L/C is made by a Bank, at a Customer demand (importer/debtor) as a guarantee extended by the issuing Bank to the beneficiary (exporter/creditor), in a context of an agreed commercial transaction for good or services. The L/C always mentions the documentation that has to be provided from the exporter to the importer and all details considered critical for the importer to take possession of the goods and make the payment. For the exporter, the L/C is a guarantee that, provided the export will fullfil its obligations (including timing), the payment is secured.

    Agreement Type

     Import L/C

    Agreement under which the Bank extends a guarantee, on Customer's (Importer) demand, to a third party (export), for a specific amount and term. The Bank's guarantee reaches the exporter via a foreign bank, as the "notifying" bank.

     Export L/C

    Is the reverse transaction from the Import L/C. In this case, Millennium bim is the notifying Bank, and the Customer is the Exporter. The foreign bank is the issuing bank 

     Stand-by Letter of Credit

    Similar to a domestic Bank Guarantee, but applied to International trade or financial trnsaction.

    Forms of Usage

    Irrevocable - Once issued, the parties' agreement is needed to introduce changes;

    Irrevocable and not Confirmed - The notifying Bank do not join its confirmation to the L/C and, therefore, do not commit to accept, pay or negotiate the L/C;

    Irrevocable and Confirmed - The notifying bank is adding is guarantee, on top of the issuing bank guarantee. This is commonly requested by exporter that do not know the issuing bank and wishes to have a localy known bank as additional guarantee;

     

    Collaterals

    To be defined upon Bank's Creditworthiness assessment. 

     

    To apply for issuance of a Letter of Credit or obtain more detailed information, please:

  • Visit your Millennium bim Branch or contact your Relationship Manager, or;
  • Call our Customer Line at:
  • +258 21 35 00 35

    +258 82 35 00 350

    +258 84 35 00 350

    +258 86 35 00 350

    Documents to present to the Bank in order to request a L/C issuing:

    Import

  • ​​A​pplication form, filed in by the Customer, and signed by the persons authorized to sign in name of the Customer;
  • Pró-forma invoice issued by the supplieror;
  • Committment letter from the Customer that the "Documento Único (D.U.) will be delivered to the bank as some as available.

  • Export

  • Swift message (MT700) from the foreign issuing bank.