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The SBLC Backed Buyers Credit agreement is a specialized financing instrument used in international trade and business transactions under Indonesian law. It is typically employed when a buyer requires medium to long-term financing for significant purchases or projects, with the credit facility being secured by a Standby Letter of Credit. This structure provides security to the lender while enabling the buyer to access financing on potentially more favorable terms. The document becomes relevant when companies need to finance large purchases, capital equipment, or project developments while providing bank-backed security to the lender. The agreement must comply with Indonesian banking regulations, particularly Law No. 7 of 1992 on Banking (as amended) and relevant Bank Indonesia regulations governing international financing and foreign exchange transactions. The document includes comprehensive provisions for facility utilization, SBLC mechanics, security enforcement, and risk allocation among parties.

1. Parties: Identifies all parties to the agreement including the borrower, lender, SBLC issuing bank, and any confirming banks

2. Background: Sets out the context of the transaction, including the purpose of the credit facility and the role of the SBLC

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation principles

4. Facility Amount and Purpose: Specifies the credit amount, currency, and permitted use of the facility

5. SBLC Terms and Conditions: Details the terms of the Standby Letter of Credit, including issuance requirements, validity period, and drawing conditions

6. Conditions Precedent: Lists all conditions that must be satisfied before the facility becomes available

7. Drawdown Mechanics: Specifies the process and requirements for utilizing the credit facility

8. Interest and Fees: Details all applicable interest rates, fees, and charges

9. Repayment Terms: Outlines the repayment schedule, prepayment provisions, and payment mechanics

10. Representations and Warranties: Contains standard and transaction-specific representations and warranties

11. Covenants: Sets out positive and negative obligations of the borrower

12. Events of Default: Lists circumstances that would trigger default and enforcement rights

13. Bank Rights and Obligations: Defines the rights and obligations of the issuing and confirming banks

14. Governing Law and Jurisdiction: Specifies Indonesian law as governing law and defines jurisdiction for disputes

15. Miscellaneous: Contains standard boilerplate provisions