LC Opening Request Letter against Payment by stabnet


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									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

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

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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