Document background
The Structured Letter of Credit is designed for complex international trade transactions requiring sophisticated financing arrangements. It extends beyond conventional letter of credit functionality by incorporating structured elements such as variable payment terms, market-linked pricing, or complex security arrangements. This document type is particularly relevant when standard trade finance instruments are insufficient to address complex trading relationships or specific risk management requirements. Operating under Hong Kong law, which provides a well-established framework for international banking and trade finance, the Structured Letter of Credit offers enhanced flexibility while maintaining the security and certainty expected in trade finance. It is commonly used in large-value transactions, commodity trading, project finance, or when parties require customized financing solutions that combine traditional trade finance with structured products.
