CAN MT 799 BE USED TO ISSUE A SBLC?

QUESTION

Dear Mr. Old Man,

Good Day.

We have received MT 799 under field 20 & field 21 indicated the same reference number.
Followed by field 79 only and indicated irrevocable standby letter of credit no…… for USD1,000,000.00. We hereby authorize  you to draw on Bank of Singapore …. upon your demand by authenticated swift…this SBLC expire on 1/3/2026. Charges on bene’s account… SBLC subject to ISP 98.

SBLC normally issued under MT 760 to advising bank to advise said LC to customer.

May I know why above SBLC is issued in MT799 and the purpose?

Can it be issued in MT 760?

Thank you.

Xona Woo
Sent from my iPhone

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ANSWER

Hi Xona,

MT 760 is specially designed for a bank to issue or advise of the issue of an undertaking (SBLC or guarantee) to the beneficiary, whereas MT 799 is used by banks to send or receive information for which another message type is not applicable.

In SBLC transactions, MT 799 would be used by the issuing bank as pre-advice that the bank is prepared to issue an SBLC, not as a notice of issue of an SBLC.

To avoid the risk of ambiguity of MT 799, you should request the SBLC to be issued using MT 760.

Best regards,

Mr. Old Man