Court continues robust approach to on-demand securities

National Infrastructure Development Co Ltd v BNP Paribas [2016] EWHC 2508, 26 September 2016

The National Infrastructure Development Co Ltd (NIDCO) engaged OAS Construtora to construct a highway in Trinidad and Tobago. Standby letters of credit were obtained by OAS to secure its performance of the works and the repayment of an advance payment. Two of those standby letters of credit were issued by BNP Paribas and counter-guaranteed by BNPP Brazil.