Issuing & Confirming Banks for Letters of Credit
Issuing and Confirming Banks for Letters of Credit
We structure the trade, underwrite the risk, raise collateral with lenders where required, then run a term sheet auction across issuing banks. Where risk or capacity requires, we arrange confirmation or a club/syndication. Issuance and confirmation occur when the applicant is bankable and the controls are documented.
Process Overview
1) Structure
Align INCOTERMS, title, insurance, and specifications. Map the flow of funds with controlled accounts. Define milestones and document standards (UCP600, ISP98, URDG758, URC522 as applicable).
2) Underwrite
Size exposure against counterpart strength, goods liquidity, hedge quality, and control strength. If collateral is insufficient, distribute to lenders first to raise coverage.
3) Auction and execute
Run a term sheet auction with issuing banks. Evaluate price, conditions, limits, and timing. Add confirmation or syndication where capacity or risk requires it, then issue.
Issuing and Confirming Banks
Issuing bank panel
- HSBC, Standard Chartered, Barclays, Lloyds
- BNP Paribas, Crédit Agricole CIB, Société Générale, Deutsche Bank, Commerzbank, UniCredit
- JPMorgan Chase, Bank of America, Citi, Wells Fargo
- MUFG, SMBC, Mizuho
- DBS, OCBC, UOB
- Royal Bank of Canada, TD, Scotiabank, BMO
- ANZ, Commonwealth Bank
- First Abu Dhabi Bank, Emirates NBD, QNB
- ICBC, Bank of China, China Construction Bank, Agricultural Bank of China
Confirming bank panel
- HSBC, Standard Chartered, Citi, JPMorgan
- BNP Paribas, Crédit Agricole CIB, Société Générale
- Deutsche Bank, Commerzbank, UniCredit
- Barclays, NatWest Markets, Lloyds
- MUFG, SMBC, Mizuho
- DBS, OCBC, UOB
- Royal Bank of Canada, TD, Scotiabank
- First Abu Dhabi Bank, Emirates NBD
Listing does not constitute a partnership or endorsement. Participation in any issuance or confirmation is at each bank’s discretion and subject to KYC, onboarding, limits, and approval.
Term Sheet Auction, Selection, and Syndication
We invite aligned banks to submit term sheets for issuance. Proposals are compared on price, fees, conditions precedent, limits, and confirmation options. For larger or recurring capacity, we organize a club or a syndication with a defined fronting role and participant allocations. Documentary credits are issued under UCP600 or ISP98. Demand guarantees use URDG758. Collections follow URC522.
Key Questions
| Question | Answer |
|---|---|
| Can issuance proceed without a bankable applicant? | No. The applicant requests the LC. Approval and execution rely on the applicant’s credit, security, and documented controls. |
| When is confirmation required? | When beneficiary risk appetite or country and bank limits indicate a need for a second balance sheet. Pricing reflects issuer, tenor, currency, and limits. |
| What if collateral is insufficient? | We structure and underwrite, then raise collateral with lenders. With coverage in place, we auction term sheets with issuing banks. |
| Do you have partnerships with the banks listed? | No. We approach and place with banks that fit the corridor and product. All outcomes are subject to bank approval. |
Requirements to Start
- Signed scope and retainer.
- Matched buy and sell contracts, specifications, and INCOTERMS (assignable where relevant).
- KYC, ownership tree, and sanctions screening for all parties.
- Commodity and currency hedge plan or fixed price offtake that locks the spread.
- Insurance matched to title and route; agreed loss payee wording.
- Flow of funds and a controlled account with milestone based releases.
Request a Term Sheet
Provide the documents listed above. We will structure the facility, underwrite the exposure, and run the term sheet auction for issuance, adding confirmation or syndication where warranted.
Request a Term SheetFinancely is an advisory and placement firm. We are not a bank. All engagements require KYC and AML checks. Issuance, confirmation, pricing, and timelines depend on bank approval, country limits, and documented controls. Instruments follow UCP600, URC522, ISP98, or URDG758 as applicable. Any securities related activity is conducted through a licensed chaperone, Member FINRA and SIPC.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestAcquisitions
Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFor Banks
Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
