Divisible Letter of Credit (MT700) – Structured Payment Release Per Shipment or Beneficiary
Segmented LC Drawdowns | Partial Shipment-Friendly | SWIFT MT700 + UCP 600 Compliant
⚠️ Need to Pay in Parts? Handling Multiple Shipments or Beneficiaries?
A European agro-buyer wanted to split a €3M LC into 3 separate €1M shipments. NNRV structured a Divisible LC, allowing suppliers to receive payment per shipment. No delays. No amendments. Each tranche cleared on delivery.
🧠 “With the divisible LC, we split our contract across 3 ports and 3 suppliers. NNRV made it flow.” – Jacques T., Agribusiness Importer
What Is a Divisible Letter of Credit?
A Divisible LC is a Letter of Credit (MT700) that allows partial transfers, partial shipments, or drawdowns to be made to one or more beneficiaries, depending on the structure. Unlike indivisible LCs, it lets the payment obligation be fulfilled in portions as shipments or services are delivered.
At NNRV, we structure divisible LCs to support segmented logistics, consortium projects, or phased delivery models under full UCP 600 compliance.
🧠 “We split $8M over 5 shipments. Payment followed each document set—thanks to the divisibility clause.” – Fatou B., Infrastructure Buyer – Senegal
Key Benefits of Divisible LC
✅ Structured Flexibility – Allows payment in multiple tranches.
✅ Ideal for Partial Shipments – Avoids LC amendments for each dispatch.
✅ Multi-Beneficiary Ready – Supports group delivery or aggregation models.
✅ Bank Payment Per Presentation – Each valid document set triggers payout.
✅ UCP 600 + MT700 Compliant – Legal under international banking rules.
How It Works
Buyer and seller agree to divide LC amount (e.g., 3 x $1M).
LC issued via MT700 with divisibility clause noted.
Seller ships first tranche – presents documents for that portion.
Bank verifies and pays proportionally.
Process repeats until LC is fully drawn.
📂 Documents Required for Divisible LC Issuance
To issue a divisible MT700 LC, we require:
📌 Master Sales Agreement – Clearly outlining phased delivery.
📌 Proforma Invoice(s) – With breakdown per tranche or milestone.
📌 Beneficiary KYC – For each party involved.
📌 MT700 Draft – Including “Divisible” in terms & instructions.
📌 Logistics Plan – Showing ports, timelines, and volumes.
🏦 Trusted Banks for Divisible LCs (MT700)
The following banks are experienced in handling divisible LC structures with SWIFT MT700 issuance:
| Bank Name | SWIFT Code | Advantages | Disadvantages | Issuance Fees | Issuance Time | Min. Transaction | LC Types |
|---|---|---|---|---|---|---|---|
| HSBC Hong Kong | HSBCHKHHXXX | Clear support for segmented LC execution | High doc scrutiny per drawdown | 1.2% – 8.5% | 2–5 days | $1M | Divisible, Transferable |
| BNP Paribas HK | BNPAHKHHXXX | Ideal for EU–Africa port shipments | May limit number of splits | 1.5% – 7.9% | 2–6 days | $1M | Divisible, Confirmed |
| Credit Foncier GmbH | CFEGDE82 | Strong EU legal framing for drawdowns | Slower in phased logistics updates | 1.8% – 9% | 2–7 days | $500K | Divisible, Irrevocable |
| Standard Commerce USA | STDMDMDMXXX | Efficient for infrastructure project flows | Higher cost for more than 5 splits | 1% – 8.7% | 2–6 days | $500K | Divisible, Confirmed |
| ABC Bank Mauritius | ABCKMUMU | Great for agro & phased commodity exports | Best for up to 3 drawdowns | 1.3% – 7.5% | 2–5 days | $250K | Divisible, Usance |
🎯 Why Use a Divisible LC?
| 🔒 Feature | ✅ Benefit |
| Partial Shipment Compatibility | Ship and get paid in tranches |
| Multi-Port or Multi-Phase Deals | Perfect for phased delivery or contracts |
| Drawdown Per Documentation Set | Each shipment triggers bank payment |
| Supports Multi-Beneficiary Use | Especially when tied to confirmed LC flows |
| Reduces Need for Amendments | No need to reissue LC per segment |
🛠️ Our 5-Step Structuring Process
Define delivery phases and value per tranche
Draft divisible MT700 with port, date, value breakdown
Coordinate with issuing bank and advising banks
Monitor each document presentation and payout
Close LC once final tranche is cleared
🔍 Divisible LC vs Other LC Types
| LC Type | Shipment Flexibility | Best Use Case | Risk Coverage |
| Divisible LC | Very High | Phased delivery or project trade | 🔒🔒🔒🔒🔒 |
| Indivisible LC | None | One-time shipment | 🔒🔒🔒 |
| Transferable LC | Moderate | Multiple-tier sourcing | 🔒🔒🔒 |
| Back-to-Back LC | High (but mirror) | Supplier-to-supplier structuring | 🔒🔒🔒🔒 |
Why Choose NNRV?
🔒 SWIFT MT700 Structuring Experts for Divisible LCs
✅ UCP 600 Legal Integration of Divisibility Clauses
📄 Step-by-Step Shipment & Drawdown Coordination
🌍 Ideal for Agro, EPC, Pharma, Construction & Commodities
📁 Multi-Port, Multi-Beneficiary LC Engineering
💲 Notes on Fees
Fees vary between 1% and 9%, depending on:
• Number of splits/drawdowns
• Bank involvement and confirmation
• Value, risk, and logistics structure
🔹 Ask NNRV for a quote tailored to your segmented trade project.
🧠 Real Testimonials
“We execute €1M per quarter under one divisible LC. It’s efficient and bank-backed.”
– Sophie D., French Medical Supplier
“Without the divisible LC, we would’ve had to issue 5 separate LCs. NNRV saved us cost and time.”
– Jean M., Road Infrastructure Project – Côte d’Ivoire
📚 What Makes Us Different?
✔️ Drawdown-by-Drawdown Structuring Logic
✔️ Bank-Approved SWIFT Field Drafts
✔️ Multi-Beneficiary & Multi-Port Setup Expertise
📌 From $250K to $100M+ divisible LC flows structured
❓ Top 5 FAQ – Answered by Experts
Can I split the LC by shipment or destination? Yes. Value, timing, and port/destination can all be segmented.
Do I need separate documents for each drawdown? Yes. Each tranche requires its own compliant document set.
Is the LC exhausted after final drawdown? Yes. Once the total value is used, the LC is considered fully utilized.
Can I add confirmation to a divisible LC? Yes. Confirmation can apply globally or to each tranche.
Can I mix divisible with transferable features? Yes. NNRV can structure hybrid LCs with both clauses where allowed.
🔗 Related Services
• Confirmed LC
• Back-to-Back LC
• Red Clause LC
• Partial Shipment LC Structuring
📖 Strategic Blog Posts
• Divisible vs Indivisible LC: Which Works Best?
• Structuring MT700 LCs for Multi-Tranche Payment
• Reducing Amendment Risks with Divisible LCs
🚀 Structure Your Divisible LC Now!
Split your LC. Structure your trade. Secure your payments. Let NNRV guide your multi-phase deal from start to finish.
📩 Book Your LC Structuring Call
☎️ Work With Experts | 🌍 MT700 Divisible LC | ✅ 1%–9% Structuring Fees