Document background
This document template is designed for situations where the size or risk profile of a letter of credit requires participation from multiple banks rather than a single issuing bank. A Syndicated Letter of Credit is particularly useful for large-scale international trade transactions where risk sharing is desired among financial institutions. The document, governed by Danish law, incorporates elements of Danish banking regulations, EU financial directives, and international trade practices such as UCP 600. It establishes the framework for multiple banks to participate in the letter of credit facility, defining their respective roles, commitments, and risk-sharing arrangements. The document is typically used in high-value transactions where the credit exposure exceeds the risk appetite or regulatory limits of a single bank, or where the applicant prefers to distribute its banking relationships across multiple institutions.
