Issuing Bank | Practical Law

Issuing Bank | Practical Law

Issuing Bank

Issuing Bank

Practical Law Glossary Item 4-382-3564 (Approx. 2 pages)

Glossary

Issuing Bank

Also known as the issuing lender or issuer. The party directly obligated to fund under a letter of credit. In a syndicated loan, one bank typically issues the letter of credit on behalf of the other revolving lenders who provide back-up to the issuing lender by taking pro rata participating interests in each letter of credit that is issued.