Letter of Credit

Letter of Credit
Letter of Credit
Letter of Credit

Letter of credit (L/C) is a form of settlements according to which the Issuing bank on behalf of the Buyer (Applicant) undertakes to pay to the Seller (Beneficiary) against complying presentation of documents as per terms and conditions of L/C.

The usage of documentary transactions guarantees fulfillment of contractual obligations, reduces risks of the parties under the contract, ensures timely delivery of goods; to avoid advance payments for goods; obtain a deferred payment, receive proceeds for the supplied goods on comfortable financial terms, etc.

Benefits of a Letter of Credit:

  • The cost of L/C is significantly lower than a loan;

  • Progressive payment of commission;

  • Professional consultation to clients at all stages of the deal;

  • Wide network of partner banks for advising / confirmation of L/Cs;

  • Different types of L/Cs to comply with customers’ needs.









Preparation of L/C draft

KGS 5 000 (subject to reimburse after L/C issuance)




0.75% per quarter

KGS 15000

KGS 200000

Issuance against other collateral

Issue 0.5%


interest rate up to 1.5% per quarter

KGS 15 000


KGS 10 000

KGS 100000

Amendment to L/C

KGS 10,000


Increase of the term or amount:


KGS 10000

KGS 50000

Examination of documents (per set)


KGS 15000

KGS 30000

Discrepancy fee (per set)

KGS10 000



SWIFT inquires (per message)

KGS 5000



Payment under L/C

As per Bank's tariffs



Confirmation fee

by arrangement






Pre-advising of L/C

KGS 5000



Advising of L/C


KGS 10000

KGS 250000

Advising of the amendment

KGS 5 000



Examination of documents and sending to the issuing bank if KICB is the nominated bank (per set)


KGS 15000


SWIFT inquires (per message)

KGS5 000



Acceptance of documents and sending to the nominated bank

KGS 10000