Letter of Comfort

Letter of Comfort

1. Before or during a new issue, a statement by an auditor stating that, while a full audit has not been done, a review of the issue's prospectus has revealed nothing inaccurate or misleading. The letter of comfort also states that the auditor is confident that a full audit would not uncover anything unusual that would negatively affect the issue.

2. A letter that a parent company submits to a bank on behalf of a subsidiary. When the subsidiary is applying to borrow funds from the bank, the letter of comfort states that the parent company approves of and supports the application.
References in periodicals archive ?
She wrote a letter of comfort to young leukaemia sufferer Fabian Bates, who she met on a visit to the Royal Marsden hospital in Chelsea, West London.
In the case of participation in this process by a special purpose vehicle, the bank guarantee must be supplemented by a letter of comfort issued by the shareholders of Newco containing the promise art.
The project has received a Letter of Comfort from the British Film Institute regarding its probable eligibility for a 25% rebate on its production costs there.
In issuing a letter of comfort, the person signifies its willingness and commitment to support the firm in case of unforeseen contingencies that may affect its ability to maintain adequate capital and liquidity levels to meet its obligations and regulatory requirements," the QFCRA said.
letter of comfort - requirements for significant controller shareholders crossing a 49% or 74% shareholding threshold to provide a 'letter of comfort' to the QFC Regulatory Authority; confirming the shareholders' capability and willingness to support the firm;
According to the joint reply, "Necessary letter of comfort by the Ministry of Finance will be issued to the Banks for increased cost of production (From about Rs.
SIR - In his pre-Christmas letter of comfort and joy (Dec 22) Mr Terry Banfield finds it "rather worrying that grown men believe in the virgin birth".
The government found some relief in the International Monetary Fund's issue to Swaziland of a $i45m letter of comfort that enabled the country to borrow funds from international institutions, although the president of the Federation of the Swazi Business Community, Henry du Pont, warns it could presage more trouble, "With the lack of accountability that we're seeing, the letter of comfort could mean a step forward and five steps backwards," he says.
The release of IMF tranche would also help restore the confidence of the World Bank and Asian Development Bank (ADB) as both the lending agencies require Pakistan to get Letter of Comfort from IMF for obtaining any new loan.
This is materially superior to Weather's bid, which is only a Bridge Facility, conditional upon a letter of comfort and then for just a EUR124.
The Algosaibi Group formalised this commitment through a letter of comfort to TIBC and offered support through capital injections available on several occasions.