MT775 — Amendment to Standby Letter of Credit
Modification of a Standby Letter of Credit (SBLC) issued via MT760. Typical cases: amount increase due to expanded contractual exposure, validity extension, addition of an "evergreen" clause (automatic renewal unless notice). Governed by ICC ISP98 (International Standby Practices).
Purpose
MT775 modifies parameters of an active SBLC. Three frequent amendment types:
- Amount increase: applicant has increased risk (new contract, larger invoice).
- Validity extension: underlying commitment lasts longer than planned.
- Evergreen clause addition: SBLC auto-renews each year unless 60-90 day notice — typical for SBLC tied to long-term contracts (energy, construction).
SBLC vs Bank Guarantee — why 2 messages
SWIFT distinguishes:
- MT767 — Amendment to Guarantee: governed by URDG 758 (publication 758). International usage, especially EMEA and Asia.
- MT775 — Amendment to Standby Letter of Credit: governed by ISP98 (publication 590) or UCP 600. Majority US usage (functional equivalent of a guarantee).
The :23: tag (Form of Documentary Credit) must explicitly reference ISP98 or URDG 758. The same French bank can issue both depending on jurisdictional context.
Main tags
| Tag | Name | Status |
|---|---|---|
:20: | Sender's Reference | Mandatory |
:21: | SBLC Reference Number (MT760 :20:) | Mandatory |
:23: | Form of Documentary Credit (ICC PUBLICATION ISP98) | Optional |
:26E: | Number of Amendment | Mandatory |
:30: | Date of Amendment | Mandatory |
:31C: | Date of New Expiry | Optional |
:32B: | New Total Amount | Conditional |
:33B: | Increase/Decrease Amount | Conditional |
:39A: | Percentage Amount Tolerance | Optional |
:71D: | Charges | Optional |
:77U: | Narrative Description of Amendment (full text) | Mandatory |
Real-world example
BNP Paribas amends USD 2.5M → 3M SBLC with expiry extension + evergreen clause addition:
{1:F01BNPAFRPPAXXX0000000000}{2:I775CITIUS33XXXXN}{3:{108:AMD775-20260519-001}}{4:
:20:AMD775-20260519-001
:21:SBLC-2026-0998
:23:ICC PUBLICATION ISP98
:26E:1
:30:260519
:31C:271231
:32B:USD3000000,00
:33B:USD500000,00
:39A:10/10
:71D:OUR USD400,00 AMENDMENT FEE
:77U:AMENDMENT TO STANDBY LETTER OF CREDIT DATED 20260201
1. SBLC AMOUNT INCREASED FROM USD2500000,00 TO USD3000000,00 (INCREASE USD500000,00)
2. EXPIRY DATE EXTENDED FROM 20271031 TO 20271231
3. AUTOMATIC EXTENSION CLAUSE (EVERGREEN) ADDED
PROVIDED THAT BANK HAS NOT GIVEN BENEFICIARY 90 DAYS PRIOR WRITTEN NOTICE OF NON-EXTENSION.
SBLC SHALL BE AUTOMATICALLY EXTENDED FOR ONE YEAR PERIODS.
4. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED AND IN FULL FORCE.
APPLICANT ACME EXPORT SARL HAS CONFIRMED ACCEPTANCE OF AMENDMENT.
-}{5:{CHK:1122334455AA}}Common pitfalls
- :26E: inconsistent: must strictly increment (1, 2, 3…). A repeated number signals a re-issuance, not a new amendment.
- Beneficiary acceptance required for increase: ISP98 rule 2.06 requires beneficiary consent for any material increase. Without explicit consent, the amendment is unenforceable.
- Evergreen clause without notice: a clause without explicit notice period exposes the issuing bank to indefinite extension.
- Confusion MT775 vs MT767: use MT767 for URDG 758, MT775 for ISP98. Wrong message = format rejections on correspondent side.