Guarantee for Ongoing Trade Continuous Credit Without Reissuance | Smart Structuring for Recurring Transactions | SWIFT MT700 Enabled

⚠️ Managing Repeat Transactions With Multiple LCs?

A global supplier of construction materials used to issue a new LC every quarter. After switching to an Evergreen LC structured by NNRV, they secured 12-month coverage with automatic renewal—no repeated costs, no interruptions.

• 🧠 “With NNRV’s Evergreen LC, we negotiated a 3-year rolling facility. It’s simple, efficient, and saves us thousands.” – Antoine F., Building Supply Exporter

What is an Evergreen Letter of Credit (LC)?

An Evergreen LC is a type of Letter of Credit that renews automatically for a defined period (e.g., every 3, 6, or 12 months) unless notice of non-renewal is given before a stated deadline. It ensures uninterrupted coverage for recurring trade relationships or long-term contracts.

At NNRV Trade Partners, we structure Evergreen LCs under SWIFT MT700 format to support ongoing trade flows, including annual contracts, leasing deals, or framework agreements. All terms remain UCP 600-compliant.

• 🧠 “Instead of renewing every LC, we set up one rolling Evergreen LC with NNRV. It covers the whole contract term.” – Lucia D., Automotive Components Exporter

Key Benefits of Evergreen LC

✅ Auto-Renewal – No need for repeated reissuance or renegotiation.

✅ Long-Term Trade Support – Ideal for annual contracts or rolling supply chains.

✅ Full Payment Security – Coverage remains intact until formally canceled.

✅ Cost Efficient – Saves on bank fees and internal admin costs.

✅ UCP 600 Compliant – Fully enforceable globally under standard LC rules.

How Does an Evergreen Letter of Credit Work?

1. Buyer Requests Evergreen LC – With defined renewal cycle and cancellation clause.

2. Bank Issues SWIFT MT700 LC – Terms include automatic renewal provisions.

3. Seller Ships Recurring Goods – In line with overarching trade contract.

4. LC Renews Automatically – Unless cancellation notice is issued.

5. Continuous Payment Coverage – Until termination or contract end.

📂 Documents Required for Evergreen LC Issuance

Before issuing an Evergreen LC, we ensure the trade structure and legal timelines are well defined. Required documents typically include:

📌 Framework Agreement – Detailing the long-term or recurring nature of trade.

📌 Initial Invoice or Delivery Plan – Supporting the start of recurring transactions.

📌 Legal Corporate Documentation – KYC, registration, licenses.

📌 Recital of Evergreen Clause – Confirming duration and renewal terms.

📌 Compliance Forms – AML, SWIFT instructions, and counterpart verification.

🏦 Approved Banks for Evergreen LC (MT700)

Only select international banks offer Evergreen LCs, due to the complexity and long-term risk involved. NNRV works closely with:

(📩 Contact us for additional options tailored to your industry.)

🎯 Why Use an Evergreen LC?

🛠️ Our 5-Step Process

1. Client provides trade contract and renewal plan

2. We design an Evergreen LC under SWIFT MT700

3. Bank issues initial LC with renewal clause

4. Ongoing shipments occur under coverage

5. Renewal continues unless cancellation is issued

🔍 Evergreen LC vs Other Instruments

Why Choose NNRV Trade Partners for Evergreen LC Structuring?

🔒 MT700 SWIFT Structuring Experts
📄 Drafting of Complex Evergreen Clauses
✅ ICC & UCP 600 Compliant Execution
🌍 Global Network for Long-Term LC Management
📁 Full Contract and Timeline Review Included

💲 Notes on Fees

Evergreen LC costs depend on:

• Duration of validity and cycle

• Legal structure of trade agreement

• Risk profile and jurisdiction

🔹 Request a custom quotation for your contract today.

🧠 Real Testimonials

• “We structured a 24-month Evergreen LC with NNRV and cut admin costs by 40%.”

  – Salim K., Medical Equipment Supply – Morocco

• “No more reissuing LCs every quarter. One setup, recurring protection.”

  – Elena P., Petrochemicals Trader – UAE

📚 What Makes Us Different?

✔️ Proven Evergreen LC Structuring Experience
✔️ Legal Drafting Support for Frameworks
✔️ Dynamic LC Monitoring and Bank Follow-Up
✔️ Contract-to-Execution Coverage

📌 From $500K to $100M+ multi-year trade guarantees secured

❓ Top 5 FAQ – Answered by Experts

1. Can Evergreen LCs be canceled mid-term? Only if proper notice is issued before the agreed cutoff date.

2. Is this common in international trade? Less common, but growing fast in sectors like infrastructure, energy, and leasing.

3. Can I define the cycle? (e.g. 6 months) Yes. 3, 6, 12-month cycles are possible depending on contract.

4. What happens if the buyer defaults? The bank is still obligated to pay during the active period.

5. Can I combine Evergreen with confirmation? Absolutely. It’s a smart way to get long-term double protection.

🔗 Related Services

• Confirmed LC
• Irrevocable LC
• Framework Contract Structuring
• Trade Compliance Drafting
• Long-Term LC Monitoring

📖 Strategic Blog Posts

• When to Choose an Evergreen LC for Ongoing Trade
• Evergreen LC vs Traditional LC: What’s the Difference?
• Structuring Multi-Year Contracts with Rolling LCs

🚀 Get Your Evergreen LC Structured Today!

Never miss a trade window again. Let NNRV structure an LC that renews automatically—on your terms.

📩 Book a Long-Term LC Strategy Call
☎️ Speak with Our Structuring Desk | 🌍 Used in 40+ Countries | ✅ 100% SWIFT MT700 Issuance