Financial Instruments

International ABU Development Foundation (IABUDF)
«International ABU Development Foundation» is involved in providing of several types of financial instruments to clients in need of recourse collateral, non-recourse collateral or credit-enhancement. We can arrange issuance of financial instruments on behalf of our Client from Major North American, European and international bank

We attract this through our Partners, Private US and International Banking Institutions, Investment Bankers.
«International ABU Development Foundation» provides following financial instruments are widely used in international practice:

Bank Guarantee (BG)
Bank Confirmation Letter (BCL)
Documentary Letter of Credit (L/C, DLC)
Standby Letter of Credit (SBLC)
Medium Term Note (MTN)
Certificate of Deposit (CD)
Proof of the Assets (POA)
Proof of Funds (POF)
Performance Bond (PB)
Safe Keeping Receipt (SKR)
Custodial Safe Keeping Receipt (CSKR)
and others.



We don’t work with leased SBLC.

Our banks can only give loans against SBLC backed by assets and securities that are actually owned by you, not by leasing. Cash-backed SBLCs are acceptable securities if you are the owner of funds behind it. No bank will approve a multi-million loans or credit lines if you are not the true ownership of the SBLC backed by your cash.


Your bank has to issue cash-backed SBLC to our Foundation as the beneficiary. This cash-backed SBLC will bolster our balance sheet to improve our chances of raising much needed capital to financing your projects.

Facts about funding of SBLC.

To obtain a loan or credit line from the bank, the applicant company must have adequate financial standing to increase the chances of getting the loan approval.

►SBLC is a security document for use as payment guarantee between two parties — the provider bank and the beneficiary bank. If not backed by assets, tt has no value.

The assets of the provider backs up the SBLC, and not the assets of the beneficiary.

Therefore the provider has to give consent for these assets to be placed at own risk.

►SBLC monetization:  CANNOT be monetized. SBLC can only be used as a collateral for loans or credit lines. The SBLC provided by a customer to us cannot be monetized as it is prohibited to do so by a third party in accordance with the banking regulations.

The SBLCs you provide can be used to significantly bolster the net asset position of our company’s balance sheets. Once issued the SBLC will appear as a new unencumbered asset on our company’s balance sheet. This significantly enhances the net asset position of our company and the chances of gaining approval for additional funding are greatly increased. With our company’s own assets and securities coupled with our customers additional unencumbered assets, our partner bank are willing to lend funds for projects under the strength of our company’s balance sheets.

►Why SBLC is cannot be funded? . Your company, on its own, may be in a position to provide SBLC directly to its funding bank, but may not receive the approval if your objective is to demand for additional funding amount that exceeds the value of the instrument (SBLC) which you provided.

More-so, your bank will demand for a packet of documents including 2-3 years of audited balance sheet of your company. However, there is no guarantee of loan approval.

This is where our Foundation plays important role to jack-up funds for projects and severe financial burden of our customers.

Under such circumstances, our foundation uses its assets and securities to augment our customer’s deficiency and place them as collaterals to our banks and obtain adequate funds to finance our customer’s projects. The SBLC has to be issued and delivered to our Foundation as the beneficiary for a period of 12 months, or longer as may be required.