For Sao-Tome and Principe, when an exporter has concluded a commercial export contract with a Sao-Tome and Principe importer and the two parties do not know each other, the irrevocable and confirmed letter of credit is the most appropriate instrument to mitigate the risks.
The Sao-Tome and Principe importer will ask the Sao-Tome and Principe bank to issue a letter of credit for the benefit of the exporter who will have previously named the name of the notifying and confirming bank to be accepted by the exporter.
For Sao-Tome and Principe, the exporter must choose a confirming bank that has in its network of correspondents the Sao-Tome and Principe bank that is proposed by the importer but also the one that has an acceptable credit rating so that there is no default of payment from the confirming bank.
A letter of credit issued in Sao-Tome and Principe is usually confirmed by a big number of banks which are prepared to take the risks of Sao-Tome and Principe banks and make sure the beneficiary of the LC or exporter obtain his payment.
LIST OF SAO-TOME AND PRINCIPE BANKS ISSUING LETTERS OF CREDIT AND WHICH ARE ACCEPTED BY THE BANKS OF EXPORTERS
Banco Internacional de São Tomé e Príncipe
Commercial Bank of São Tomé and Príncipe
Afriland First Bank São Tomé e Príncipe
CONFIRMING BANKS FOR LETTER OF CREDIT ISSUED THROUGH SAO-TOME AND PRINCIPE BANKS
Banks which are confirm the letters of credit issued in Sao-Tome and Principe by Sao-Tome and Principe banks are: (please contact us to obtain the list or to be listed as confirming bank).
SAO-TOME AND PRINCIPE: CONFIRMATION FEE FOR LETTER OF CREDIT FROM A SAO-TOME AND PRINCIPE BANK
Confirmation charges and fees for letters of credit issued through Sao-Tome and Principe banks can be obtained on demand by emailing: email@example.com.
TRADEFINANCE.AFRICA COUNTRIES OF EXPERTISE