- Side
- Issuing or confirming bank
- Exposure
- Issuing bank, funded to maturity
- Priced as
- Commission plus margin
- Closes
- In one mandate
One exposure, not two
When a correspondent confirms a credit and then discounts it, the bank is doing one thing: taking the issuing bank’s risk until maturity, and funding it in the meantime. Two mandates, two committees and two prices describe a single position.
For the issuing bank, one correspondent doing both means the client is served in one conversation rather than three, and the all-in cost is known before the shipment moves rather than after.
For the confirming bank it is a fuller asset for the same credit work — commission and margin on an exposure it was going to underwrite anyway, on a name it has already sized against its country limit.
The shape of the flow
Bank to bank, both legs at once: add the undertaking and fund it, so the issuing bank’s client is served and the exposure is one decision.
How it works on TradeOrigin
One mandate covering the undertaking and the funding.
Post the credit and the ask
The credit and its terms, stating that confirmation and discounting are wanted together.
Correspondents bid the all-in
Commission and margin quoted as one cost, sealed from other bidders.
Accept once
A single mandate covers both legs on the same record and the same terms.
Fund, then reimburse
The confirming bank pays the beneficiary and is reimbursed by the issuing bank at maturity.
Who it is for
Closing in one conversation
Your client wants a confirmed credit and early funds. One correspondent, one price, one timeline.
A fuller asset
The same credit decision produces both fee income and a funded, self-liquidating position.
Originating trade assets
Financial institutions can leverage the platform for originating FI trade deals from banks globally — this is the version that carries funding with it.
What you get
One credit decision
The committee looks at one obligor and one maturity, not two overlapping requests.
A price the client can act on
All-in cost known before shipment rather than assembled afterwards.
No hand-off risk
No confirmed credit left waiting for a funder who never appears.
Sealed throughout
Bidding stays confidential, so appetite and funding position stay private.
What the bank will ask for
Uploaded once, against the deal, and visible only to the counterparties on it.
Questions
Can the two legs be priced separately in the bid?
They are quoted together as an all-in, and the bid shows the commission and the margin behind it, so nothing is hidden inside one number.
What if we only want to confirm?
Then raise it as confirmation alone — the standalone page covers that flow.
Does the beneficiary see both legs?
The beneficiary sees a confirmed credit and early payment. The commercial arrangement behind it sits between the banks.
Related
LC Confirmation (FI)
Find a correspondent to confirm your credit, or take confirmation exposure on names that fit your appetite.
Bank to bankLC Discounting (FI)
Buy or place accepted LC paper between banks, priced as bank risk on a known maturity.
ProductConfirmation & Discounting
Buy the undertaking and the early payment together, from one bank, at one all-in price.