An “L/C” is a guarantee instrument issued by a bank for account and by order of an importer in favor of the exporter.
It works as a guarantee by the issuing bank and may bear the confirmation of another bank, so that the exporter is assured of payment by two banks. If the issuing bank fails to pay, the confirming bank will honor the transaction. The guarantee is valid provided the exporter complies strictly with the terms of the L/C.
The structure of CCB Brasil enables L/Cs to be issued for Brazilian importers through CCB Brasil, or to foreign importers using Cayman Branch.