LC Opening Request Letter against Payment

Sample Application Letter to Bank (SBI, ICIC, PNB, IDBI, AXIS, IOB etc.) for Opening LC against 100% Margin Money Deposit in word/ .doc format

August 30 ,2013

The General Manager
State Bank of India
M G Road
Bangalore 458 545

Dear Sir,

Reg : Opening of Letter of Credit.

We have submitted an application to you on 25.08.2013 for opening of one Foreign LC for Euro --------------- fvg Fagus Crecon Crten GmbH & Co KG, Hannover, Germany for importing Grecon Spark Detection & Extinguishing system with its components. 

We intimate you that an unfortunate incident of fire occurred at our factory on 20th April,2013 when the Blast Furness section  of the plant got gutted resulting in stoppage of the production activities since some of the critical equipments got completely damaged.

Hence as an precautionary measure over and above the fire policy rule applicable in the factory, we intend to install fire detection & extinguishing system by importing the same from the above vendor and so we submitted to you said LC opening application.

It has been intimated to us that the goods to be imported under proposed  LC is not raw material but capital goods, such LC  can  not be opened in terms of  NBF limit sanctioned and available  to us , as the sanction is purely for importing of raw material which is a part of working capital.

So, we request you to open the said LC with 100% margin, urgently considering our urgent need of importing the said Grecon Spark Detection & Extinguishing system with its components.

In this context we would like to inform you that we have retained fixed deposit to the tune aggregating Rs. 1500.00 lacs  with you as margin for issue of LC. Till date the usage from the said  Deposit is Rs. 1000.00 lacs for issue of three LC`s by you on our behalf and leftover balance is Rs 500.00 lacs (appx) which is sufficient to cover 100% margin for issue of the proposed LC for Euro ---------

So, we request you to issue the above LC urgently.

Thanking You,

Yours Faithfully



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