LOI / ICPO draft

LOI / ICPO DRAFT

Please note:
* Portions in the draft marked in BLUE are for your assistance.
* This LOI / ICPO is to be prepared on the Buyers letterhead. (By buyer it is meant the issuer of the LC not
the mandate / broker / agent / authorized representative...etc).
* This is a format of an LOI / ICPO that is acceptable to us & must be completed in full else it shall be
deemed incomplete & rejected.
* Sanitized documents are not accepted.

-----------------------------------------------------------------------------------------------------------DATE OF ISSUE: DD/MM/YYYY

(Select applicable LOI or ICPO & delete other in the heading)

LETTER OF INTENT / IRREVOCABLE CONFIRMED PURCHASE ORDER

To: (Please complete using details of our company that U will find in the message to which this has been
attached OR as has been advised to U in the accompanying message).

We, (corporate name), of (address) hereby state and represent with full corporate authority &
responsibility and under the penalty of perjury - that we are ready, willing and able to consummate the
purchase of the following commodity as per the specification, the quantity and the price - in
accordance with the terms and conditions stated herein under.
COMMODITY:
ORIGIN: (Please state your preference but kindly include {Sellers option of country} since it will be our
prerogative).

SPECIFICATIONS: (complete specification, so we know for sure of your specific requirement).

PACKING: (Bags or Bulk, please specify).
QUANTITY: (In Metric Tons) (+/- 5%).
CONTRACT LENGTH: (Duration in months).
DESTINATION PORT: (Exact name of port and country NON-embargoed only).
DISCHARGE RATE: (In Metric Tons PWWD).
TERMS: (FOB / C&F / CIF )
SHIPMENTS: (Please advise shipping schedule if available but kindly note that the first lift will be normally
within 30-45 days from date of receipt of LC & the rest as per mutually agreed schedule).

TARGET PRICE: (Please write a price based on Soft Offer current market conditions, that you would
accept and to sign contract this is to save us time without endless communication).

INSPECTION: Q&Q by SGS / Equivalent will be at seller's (our) cost at port of loading.

LOI / ICPO draft

LOI / ICPO draft

PAYMENT INSTRUMENT: (Please choose from amongst the following & insert the same into your LOI /
ICPO. This is a major factor in arriving at state the instrument which has been agreed
upon if this draft if being requested dependant on prior communication).

PERFORMANCE BOND: (Please note that our P.B. will be issued after Buyers L/C).
We understand that any and all offers and/or contracts will be subject to successful seller verification
of funds availability. We hereby give our permission for the seller to conduct a soft probe of our
account as per the co-ordinates below.

(The above is requested even if a BCL accompanies the LOI/ICPO). It is a summary portion & will be exercised
only if the BCL is found to be unclear or incomplete).

BANKING CO-ORDINATES:
L/C ISSUING BANK
Bank Name:
Branch:
Full Address:
Tel:
Fax:
Email:
Contact person:
Position/Designation:
SWIFT code:
Account Name:
Account Number:
CONFIRMING BANK (Must be a top 50 Prime world bank)

Name:
Address:
Bank Official:
Tel:
Fax:

(At the bottom of LOI / ICPO)

Name:
Signature
Date:

(Corporate Seal)
(Designation)

________________________________________________________________________

LOI / ICPO draft

LOI / ICPO draft

PROCEDURES:

1. Buyer sends signed, sealed current dated LOI / ICPO (as above) his letterhead, including complete and
detailed banking information and contact details preferably accompanied by a BCL.

2. Upon acceptance of the LOI/ICPO, our FCO will be issued within 36 / 48 hours.
3. Buyer signs and seals FCO accepting price and conditions and returns it along with the draft copy of
L/C text for our approval.
* The BCL can be issued at this stage if required but please note that the LOI must contain permission for soft
probe to exercise if felt necessary at step # 1.

4. Draft contract is issued. Any amendments required will be done at this stage.
5. Buyer returns FINAL CONTRACT duly signed and sealed by e-mail / fax.
6. Within 7 days after the signature of FINAL CONTRACT Buyer opens his L/C.
7. PB is posted within 7 days of receipt of LC.
8. First shipment commences 40-45 days after opening of buyer's financial instrument. Any additional
shipments to take place as per pre-determined (contractually) mutually agreed shipping schedule.

LOI / ICPO draft