Letter-of-Credit Cost Simulator
The calculator below uses Bloomberg© Inter-Bank LC Mid-Spreads Q2-2025
as its base grid. Issuance fees remunerate the issuing bank for credit, compliance and capital allocation; confirmation fees compensate a confirming bank for accepting payment default risk on the issuer. The model applies the formula:
Total Cost = [ (Issue Bps + Confirm Bps) / 10 000 ] × Face Amount × (Tenor ÷ 12 )
where Issue Bps
and Confirm Bps
are adjusted for bank rating and collateral coverage. Enter your parameters for an indicative cost; then request a definitive quote and we will syndicate the enquiry across our investment-grade panel.
Ready for bank-verified pricing? Submit your draft LC wording and beneficiary details and we will release firm terms—usually within three business days.
Request Definitive Quote
The figures above are illustrative. Final pricing depends on full credit appraisal, Know-Your-Customer checks, sanctions screening, country risk and collateral validation. Financely Group and its affiliates make no representation or warranty, express or implied, regarding the completeness or accuracy of this estimate. No contractual obligations arise until formal facility documentation is executed by all relevant parties.