Confirmed letter of Credit


A Confirmed Letter of Credit is a second guarantee letter by another financial agency on the letter of credit for a client.  This confirmed letter of credit serves to secure payment on the issued letter of credit; this second guarantee letter is required when the issuing bank of the letter of credit is not viewed favorably by the seller. There will be an invoice number and a reference number which must be mentioned in the letter.

While writing a letter like this, do not forget to include the terms and conditions. It must be either contained in the letter, or it must be attached along with the letter. Since it is a guarantee letter, you must be writing it very carefully because it will act as a written proof for further future references. In case if you feel that you are not confident enough to write a letter like this then you can refer the sample letter that is given below.

Sample Letter

Invoice Number: 39034

Reference No: BH390


Lorenzo J. Granata,

Credit Officer,

Downtown First Bank,

1549 Carson Street,

San Diego, CA 92101

September 20, 2010


William F. Wright,

Global Freights & Services,

1872 Hillcrest Avenue,

Waltham, MA 02154

Dear Mr. Wright,

RE: Confirmation of letter of credit

Hope this letter reaches to you at the best of your health.

This letter serves to be information that Downtown First Bank is happy to issue a confirmation of the letter of credit to you from Garner Bank, Mississippi.

However, there are a couple of minor adjustments to the terms and conditions as per our discussion on this confirmation issuance which you were verbally agreeable to while we had a telephonic conversation on DD/MM/YYYY. Hence, it ‘d be good if you could please read through the amendments and sign on the attached copies of a confirmation of your consent regarding the same.

This letter also serves as a reminder that the letter of credit which was issued earlier by you is an irrevocable letter of credit that is legally binding which requires your obligation in fulfilling its contents or be charged with adverse consequences.

We trust and hope that you are clear with the terms and conditions attached with this confirmation letter of credit and we thank you for your confidence in our bank. If you have any queries or clarifications, please do not hesitate to call us on ********** or email us at

We look forward to expanding business collaborations with you in the future.

Thanking you.

Respectfully Yours,

Lorenzo J. Granata

Credit Officer

Downtown First Bank

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