The fees and collateral requirements depend on the type and amount of the instrument, as well as the strength of your financial profile. Generally, Prominence Bank will charge an issuance fee (often a percentage of the instrument’s face value, e.g. a few percent per annum for an SBLC) and may require you to provide cash collateral or a deposit to secure the instrument. For instance, if you need a €10M Standby Letter of Credit, the bank might require a certain deposit or asset as security, or arrange for insurance/indemnities, plus charge an annual fee for as long as the SBLC is outstanding. Each case is structured individually – sometimes we offer structured solutionslike tying the instrument to a trade or using a third-party guarantor/insurer. We aim to be flexible and competitive with our fees. All costs would be disclosed to you up front during the application process. (As a reference point, our performance bond insurance partnerships quote premiums between 0.05% to 2% of the insured value – this is separate but gives an idea of external costs if needed.)
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