Trade Services

Whether you are importer or exporter, you need a well-known financial intermediary with a world-class reputation to support you cross-border trade. AO Citibank helps you maximize the efficiency and security of your international trade activities by serving as a trusted advisor in your various business transactions.

Letters of Credit

  • Import LCs

    If you are an importer, letter of credit offers you full security that the goods ordered will only be paid for if the documents presented appear to comply with your instructions as specified in the letter of credit.

  • Export LCs

    Regardless of an importer's financial status or geographic location, Export Letters of Credit provide exporters with a secure vehicle to receive payment. Irrevocable undertaking from the buyer's bank makes you certain of payment by the importer if the documents comply with the terms of the credit are presented within the specified term.

  • LC Confirmations

    A AO Citibank Letter of Credit Confirmation allows exporters to mitigate both country risk and issuing-bank risk. This is particularly useful when your customer is located in a potentially unstable environment. A global presence and vast correspondent relationships allow AO Citibank to assist you wherever your business is conducted.

  • Export LC confirmation with discounting

    The solution provides the beneficiary (Seller) with an option to collect funds before maturity and for applicant (Buyer) to enjoy deferred payment tenor, at competitive pricing due to trade nature of deal and LC type of transaction that provides control over the usage of funds.

    Benefits

    • Enables Seller to receive payment more promptly – Seller won’t have to wait for the Buyer to pay at a future date
    • Helps to improve company cashflow
    • Gives the Seller the ability to offer their trading partner longer payment terms, which can put Seller in a stronger negotiating position and improve the relationship
    • Foreign bank financing becomes available at competitive pricing level
    • Seller can proceed via Citi Russia to ensure smooth processing and comfort
  • Import LC issuance with Discounting

    The solution provides the Applicant (Buyer) with deferred payment terms for purchased goods while the Seller receives the payment at sight (immediate after shipment). AO Citibank will make payment in favor of the Seller at sight, Buyer will reimburse Citibank for the amount paid to the Seller on an agreed deferred payment date.

    Benefits

    • Enables Buyer to get deferred payment terms and Seller to receive payment more promptly
    • Helps to improve company cashflow
    • Buyer can negotiate discounting for the goods with the Seller more successfully
    • Foreign bank financing becomes available at competitive pricing level
    • Buyer and Seller can proceed via Citi Russia to ensure smooth processing and comfort
    • This structure of deal can be an alternative option in case the set up of Supplier Chain Finance Program is not efficient from documentation and process perspective

Bank Guarantees / Standby Letters of Credit

  • Letters of Guarantee

    Depending on your business requirements, you can choose from a wide range of AO Citibank Letters of Guarantee (performance guarantee, payment guarantee, customs bond, etc.) tailored to your specific needs.

  • Standby Letters of Guarantee

    With a AO Citibank Standby Letter of Credit the beneficiary will receive monetary indemnification should the applicant fail to perform a contractual obligation.

Structured Solutions

Having a global presence together with the outstanding network of correspondent bank relationships Citi can provide you with the specific Structured Trade solutions perfectly tailored to your business needs.

Some of examples of structured solutions:

  • Issuance of "fronted" Letters of Credit / Stand by Letters of Credit

    Sometimes there is a need to issue Letters of Credit/Standby Letters of Credit in favor of supplier abroad to cover large value CAPEX project (ex. purchasing of equipment) which can be hardly handled by one bank. Citi can provide a solution which will allow the issuance of the whole instrument by one "fronting" bank with participating part of the risk to the pre-agreed third party investor banks.

  • Syndicated facility for Letters of Credit / Stand by Letters of Credit issuance

    A large readily available facility could be arranged by pulling together a syndicate of high quality banks to enable you and your subsidiaries across the globe to concentrate the issuance of high volumes of Letters of Credit / Standby Letters of Credit with one bank.