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LC Confirmation

The Bank may receive a request from the Issuing Bank to add confirmation to the LC issued by the Issuing Bank. Confirmation is asked for when the beneficiary is not comfortable with the financial standing of the Issuing Bank or is doubtful about the country risk of the Issuing Bank.

The request to confirm the LC may also come from the beneficiary. In such instances, the Bank (as an Advising Bank) will require the beneficiary to seek consent from the applicant for the Issuing Bank to instruct the Bank to add confirmation to the LC. Confirmation of the LC constitutes a definite undertaking by the Bank (Advising Bank) to assume the obligations and liabilities similar to and in addition to those of the Issuing Bank thereby guaranteeing payment should the Issuing Bank default in payment. The Confirming Bank is usually the Advising Bank and will also assume the role of the Negotiating Bank.

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Benefits

	Additional undertaking of OCBC Bank to pay

	Liability of OCBC Bank as confirming bank similar to that of Issuing Bank

Why OCBC Bank? *

	With OCBC Bank confirming your Letters of Credit, you will be able to trade with the comfort of knowing that payment is assured at the counters of the confirming OCBC Bank branch, so long as you are able to conform to the terms and conditions of the Letters of Credit.

	With a diverse appetite for risk exposure covering more than 300 banks in over 35 countries spanning across the globe, OCBC Bank is well positioned to satisfy your Letter of Credit confirmation needs.

	OCBC Bank understands you may need to provide for the cost of Letter of Credit confirmation before concluding your deals with your buyers; hence an indicative confirmation pricing can be quoted for your added convenience.

	To further easing your burden, OCBC Bank can add its confirmation automatically upon advising the Letter of Credit if confirmation fee is for the account of your buyer.

	To enable you to better manage your cash flow and FX risk, OCBC Bank will honour payment upon presentation of documents drawn at sight that conforms to the terms and conditions of the Letter of Credit; for draft drawn on usance term, payment will be honoured one business day after maturity date.

* Please note that OCBC Bank's ability to confirm letters of credit is subject to the availability of commercial and cross border credits for the issuing bank and the acceptability of the contents of the letter of credit at the time of the transaction.

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