IIBLP’s ISP98 Forms are freely available on DCW, including templates for demand-only standbys, extensions, reductions, local and counter standbys, and more.
At the recent 2025 IIBLP Guarantee & Standby Forum in Singapore, Pete DelGrosso, a senior operations executive with over 35 years at Mizuho, offered a grounded and practical view on a challenge familiar to many banks: the unnecessary complexity surrounding standby letters of credit, particularly in back-office execution.
DelGrosso, who recently transitioned to Mizuho’s APAC operations after a long tenure in the Americas, emphasized that while commercial LCs under UCP600 are broadly understood across operations teams, standbys still tend to generate hesitation.
“You go into a back office, they issue a MT700, they’ve got the SWIFT handbook and training materials. But when it comes to standbys and guarantees, there’s a little bit of intimidation.”
This discomfort, Delgrosso noted, often stems from the lack of standard reference materials and a tendency to overcomplicate the drafting process. The industry reports routine standby requests are frequently escalated to legal, even when they involve basic, low-risk terms. The result is a slower turnaround for clients, and greater internal burden on compliance and documentation teams.
A Usable Framework
DelGrosso pointed to IIBLP’s newly updated ISP98 Model Forms —which include fillable templates, annotated footnotes, and clear alignment with ISP98 — as a valuable tool to address this issue. The forms, he said, make it easier for operations teams to handle standbys without leaning heavily on legal, especially for recurring or straightforward structures.
He encouraged banks to compare the model forms against what they’re currently issuing. In his experience, the model forms “get right to the point” and offer a level of clarity that’s often missing in over-customized guarantees.
Supporting Training and Client Education
DelGrosso also spoke to the forms’ value as a training and communication tool. In APAC especially, he observed and confirmed with peer banks, external training on standby LCs remains limited, and even long-standing corporate clients are often unfamiliar with ISP98.
“They’ve been handing you the same application for 20 years, and they love when a bank explains the risks and rules. This gives you something concrete to walk through with them.”
He described how some banks — even beyond his own — have begun selectively incorporating model language into their internal templates, particularly for features like automatic extension and reduction clauses. The model forms, he suggested, offer “built-in best practices” that help streamline not just issuance, but also the examination process at the time of drawing.
Clarity Over Complexity
DelGrosso’s overall message was clear: a simpler, more standardized approach to standby documentation benefits everyone involved —issuers, advising banks, beneficiaries, and clients. He encouraged institutions to revisit their current practices with fresh eyes.
“Take a look at what you’re issuing. And then take a look at the model forms.”
Peter DelGrosso is a senior executive with over 37 years at Mizuho Bank, with extensive expertise in ops management and cross-regional leadership, having served in key roles in the Americas and APAC.
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