Overview
Black Diamond Group arranges the issuance of financial instruments on behalf of corporate and institutional clients who require creditworthy guarantees, payment undertakings, or standby facilities to support international trade, project finance, contractual performance obligations, or other structured transactions.
We work with a select network of issuing banks and insurance companies across multiple jurisdictions, structuring each instrument to meet the specific requirements of the underlying transaction, the beneficiary, and applicable regulatory frameworks.
Instruments We Arrange
Standby Letters of Credit (SBLCs)
SWIFT MT760 instruments issued under ISP98 or UCP 600, typically used as payment guarantees, performance security, or collateral for credit lines. Can be confirmed, transferable, or issued as back-to-back structures.
Bank Guarantees (BGs)
Demand guarantees under URDG 758, including bid bonds, advance payment guarantees, performance bonds, and retention guarantees. Issued for infrastructure, construction, and supply contracts worldwide.
Letters of Credit (LCs)
Documentary credits (MT700) under UCP 600 for physical trade, including sight and usance LCs, confirmed credits, and revolving structures for recurring shipments.
Surety Bonds
Performance and payment bonds issued by insurance companies or banks, often required for public procurement, construction contracts, and large-scale commercial projects.
Advance Payment Guarantees (APGs)
Protect buyers who have made pre-payments to suppliers, ensuring refund of advance amounts if goods are not delivered or services not rendered according to contract.
Irrevocable Payment Undertakings (IPUs)
Customised payment commitments tailored to specific transaction requirements, often used in structured finance, project finance, and complex multi-party arrangements.
The Issuance Process
Mandate Review & Structuring
Client submits transaction summary, underlying contract documentation, and beneficiary requirements. We assess feasibility, identify suitable issuing banks or insurers, and propose initial structure and indicative terms.
Due Diligence & Credit Approval
Comprehensive KYC, AML, and sanctions screening of applicant and beneficiary. Review of financial statements, corporate structure, and transaction economics. Credit committee approval from issuing bank or insurer.
Term Sheet & Documentation
Formal term sheet outlining fees, tenor, issuer, and instrument specifics. Preparation of application forms, indemnities, counter-guarantees (if required), and supporting legal documentation.
Issuance & SWIFT Delivery
Issuing bank authenticates and transmits instrument via SWIFT (MT760, MT700, or MT799 pre-advice as applicable). Beneficiary's bank confirms receipt and authenticity. Client receives certified copies and transaction documentation.
Ongoing Management & Amendment
Support for amendments, extensions, reductions, or early cancellations as needed throughout the life of the instrument. Coordination with issuing bank and beneficiary for any changes.
Key Considerations
Issuer Standing
Beneficiaries typically require instruments from banks or insurers with investment-grade ratings or strong regional reputations. We match issuer to beneficiary requirements and jurisdiction.
Collateral & Security
Issuance may require cash collateral, counter-guarantees, charges over assets, or third-party credit enhancement depending on applicant credit profile and instrument size.
Fees & Tenor
Issuance fees typically 1-5% per annum depending on issuer, risk, and tenor. Instruments generally range from 3 months to 10 years, with extension provisions as agreed.
Legal & Regulatory
Instruments must comply with ICC rules (UCP 600, URDG 758, ISP98), local banking regulations, and sanctions frameworks. Legal opinions may be required for complex structures.