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Confirming Letter of Credit

Used to provide credit enhancement and support for bonds, in turn lowering costs and encouraging growth in your community.

Confirming Letters of Credit Can Be Used To:
  • Confirm non-housing bond issuances
  • Confirm taxable housing bond issuances
  • Confirm tax-exempt housing bond issuances

Benefits

  • Lower costs for the member municipality
  • Encourages growth and improvement in your community
  • Proceeds from the bond issuance can help finance a range of projects:
    • Housing Developments
    • Healthcare facilities
    • Schools and universities
    • Manufacturing plants

Features

  • AAA-rated
  • Competitive pricing

Used to support performance obligations, providing additional opportunities to enhance your customer relationships.

Confirming Letters of Credit Can Support Performance Obligations for:
  • Contracts, bids
  • Project completion
  • Lease payments
  • Self-funded workers compensation liability, unemployment and other programs
  • Interest rate swap counterparty guarantees

Benefits

  • Timely issuance
  • No need to unnecessarily pledge and monitor securities 
  • Fee income opportunities for the member
  • Ability to enhance your customer relationships

Features

  • AAA-rated
  • Competitive pricing

Request a Confirming Letter of Credit

To get started, member institutions must contact the Money Desk.

Request a Confirming LOC

Educational Resources

The Letter of Credit Opportunity Video/Webinar The Letter of Credit Opportunity Explore the balance sheet benefits and variety of applications for an FHLB Des Moines Letter of Credit in this 60-minute webinar presentation. Expanded Opportunities for Letters of Credit Article Expanded Opportunities for Letters of Credit While FHLB Des Moines Letters of Credit are commonly used as an attractive alternative to pledging securities for public unit deposits, an LOC can serve a variety of purposes. Coin of the Realm - Episode 16 Podcast Coin of the Realm - Episode 16 In this episode of The Insider, we discuss the features of a FHLB Des Moines Letter of Credit and explore some applications to support performance obligation guarantees. Expanding Markets, Expanding Letter of Credit Uses Whitepaper Expanding Markets, Expanding Letter of Credit Uses Whether it's an opportunity to drive fee income and enhance ROE by backing a bond, supporting a self-insurance program, or covering a customer's performance obligation; it may be worth your while to explore some of these expanded uses of letters of credit.

See all educational resources regarding this topic.