Instrument proposals

Can we issue this?

A short, paid screen for intermediaries and applicants proposing a documentary letter of credit, standby letter of credit or bank guarantee, in any of the forms IFB issues. It answers one question: whether the proposal can be issued under IFB's requirements.

Read this first

IFB issues against cover held by the bank, in one of two forms:
Cash lodged with IFB — 100% of face value.
Securities or other assets pledged to IFB — 130% of face value as a minimum, higher depending on the client's rating and on the asset itself.
A combination — each part counts on its own terms. Fifty million in cash plus sixty-five million in pledged securities covers a hundred million: the cash at face, the securities at 130%.
Plus an issuance fee of 1.2–3% either way.

Funds or assets that stay at another institution are not cover. Proof-of-funds letters, blocked-funds confirmations and safekeeping receipts are not cover. If your client cannot place the value with us, we cannot issue, and the screen will tell you so. Most proposals fail here. Please do not pay the fee expecting a different answer to one you already know.

Why 130% and not 100%

Cash is worth what it says. An asset is worth what it fetches when the bank has to sell it, at a moment of its counterparty's choosing rather than its own. The uplift is the difference between those two numbers. Where ownership of a security cannot be confirmed by the registrar, custodian or issuer — independently of the party offering it — it will not be accepted at any ratio.

If you are not yet a client

Cover lodged with the bank means an account at the bank. A non-client must complete account opening and full KYC/AML onboarding before any instrument can be issued, and onboarding is not guaranteed to succeed. The screen will tell you where that step sits in your sequence, but it cannot shorten it.

What we do not do

We do not issue instruments to be discounted, monetised, leased or assigned. If the instrument is intended to be turned into cash rather than to secure an obligation, this is not a service we offer at any cover level.

What to have ready

You upload after paying, at your own pace, and the portal shows this list with what you have covered so far. A complete submission contains:

• Applicant identity and KYC — Certificate of incorporation and statutes, Corporate profile / company information sheet (CIS), Ownership and UBO structure to natural persons, and related
• Authority to act — Signed mandate from the applicant, if submitted by an intermediary, Power of attorney or authorisation letter, Contact details of the applicant itself, not only the intermediary
• The underlying transaction — Signed sale and purchase contract, or firm offer, Proforma invoice, Goods or services, quantity and price, and related
• The instrument requested — Draft instrument wording, or the beneficiary's required format, Beneficiary name, address and banking coordinates, Face value, currency, tenor and expiry, and related
• Cover - cash — Bank statement showing the funds, Proof of funds, with the issuing institution contactable for verification, Written confirmation the funds will be transferred to IFB, and related
• Cover - assets and securities — Schedule of the assets or securities offered, Independent, current valuation, Proof of ownership from a registrar, custodian or land registry, and related
• Beneficiary — Beneficiary company details and registration, Relationship between applicant and beneficiary, Beneficiary bank details for advising
• Financial standing — Audited financial statements, Management accounts, Existing facilities and debt schedule
• Compliance — Source of funds and source of wealth declaration, Sanctions and PEP position, Tax residency information

Cover evidence is the part that decides the outcome. Everything else can be completed later; without it the assessment is short and the answer inconclusive.

What you receive

A written assessment: the cover position calculated against your figures, whether the underlying trade is evidenced, what is missing, and a plain verdict. Usually within two business days.

What this is not

Not a commitment to issue, not an approval, not an indication of terms. A positive screen means the proposal is worth a conversation. Nothing more.