Central Térmica de Temane SA & Anor v Banco Santander SA

Facts

The first claimant, CTT, a Mozambique corporation, was the employer under a project to build and operate a 450 MW gas-fired power plant at Temane, Mozambique. In support of the EPC Contract with the TSK Group, the defendant bank, Santander, issued an Advance Payment Bond and a Performance Bond in favour of CTT at the request of its customer TSK. The Bonds were English law autonomous demand instruments, with an exclusive English jurisdiction clause. Clause 4 required demands to be delivered to Santander's Madrid office, and clause 7 required payment to the account specified in the demand. On 4 April 2025 CTT demanded USD 4,766,078.66 and USD 86,030,000, payable to its account at ABSA Bank in Mozambique. Santander accepted that the demands were valid in form and content. On 10 April 2025, on TSK's without-notice application, a Spanish court granted an interim injunction restraining Santander from paying. CTT's application to discharge it was dismissed on 20 January 2026, and CTT's appeal was pending. CTT issued these proceedings seeking payment of USD 90,796,078.66 plus interest. Santander relied on the rule in Ralli Brothers and, alternatively, sought a stay of execution or a deferred payment order. Citi, the second claimant, no longer had a live claim following Santander's admission that CTT was the beneficiary.