Letters of Credit


Members can benefit from discounted pricing for letters of credit (LCs) that credit enhance bond financings or provide performance guarantees for housing and economic development projects eligible under the CICA program.
The FHLB Chicago offers LCs that are a low-cost and efficient way for members to attract and secure agreements with third parties. Using a letter of credit from the FHLB Chicago allows members to leverage our Aaa/AA+ rating at a competitive price.
Benefits of using letters of credit:
  • Provide liquidity by serving as an alternative form of collateral;
  • Help members manage asset/liability positions;
  • Improve transaction costs;
  • Allow smaller members to compete with larger banks and grow fee income; and
  • Provide project financing opportunities that support community economic development and affordable housing projects.


To obtain current pricing on CICA LC​s, please contact the Member Transaction Desk at 855-345-2244 or lcops@fhlbc.com​. Use the CEDA or CIP applications to apply. Additional documentation may be required.

Visit the FHLB Chicago's main Letters of Credit page to learn about other types of letters of credit issued by the FHLB Chicago.