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Export Letter of Credit

An irrevocable undertaking of the buyer’s bank (the Issuing Bank), received in UniCredit Bulbank, to pay to the seller - the Beneficiary under an LC, a definite amount, against presentation by the Beneficiary of complying documents, stipulated in the Letter of Credit, within specified time limits.

Export Letter of Credit


  • Payment is guaranteed upon Beneficiary’s presentation of complying documents
  • Timeframe compliant with the agreed contractual terms
  • In case of a confirmed L/C the customer (Beneficiary under a Letter of Credit) has double assurance for payment – that of the Issuing bank and the one of UniCredit Bulbank AD acting as Confirming bank.

Whom is it Suitable for?

  • Suppliers/Exporters of goods and/or services abroad or in the country

  • Exporters trading with new clients, operating at unknown markets or markets with high risk profile

How Does it Work?

  1. UniCredit Bulbank, acting as an Advising bank, receives a Letter of Credit and advises the Beneficiary of the receipt of an authentic Documentary Letter of Credit in its favor.

  2. The beneficiary ships the goods subject to the Letter of Credit and presents the documents to UniCredit Bulbank. UCB checks and forwards the documents to the Issuing bank.  Upon receipt of documents, the Issuing Bank examines them for compliance with LC conditions and if they comply, effects payment towards UCB or undertakes to effect payment at maturity.

  3. If the Letter of Credit is issued with instructions to be confirmed and upon Beneficiary’s request, UCB may add its confirmation and so undertaking an irrevocable obligation towards the Beneficiary to effect payment upon Beneficiary’s complying presentation at its counters. Whenever UCB confirms a Letter of Credit its undertaking to the customer – the Beneficiary under the LC is separate from and in addition to the Issuing bank’s undertaking.

Frequently Asked Questions

Regardless of the creditworthiness of the importer, upon presentation of complying documents payment will be executed.

The confirmed letter of credit contains double insurance for the payment - of the issuing bank and of UniCredit Bulbank as a confirming bank.

Yes, when the export Letter of credit is received as transferable, UniCredit Bulbank may be asked for its transfer in favor of the final supplier as second Beneficiary.

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