Business Banking

Islamic Trade Financing / Islamic Trade Finance
Islamic Trade Finance offers a range of services and financing to Customers to facilitate their local and international Shariah compliant business transactions.

List of products:

Letter of Credit-i (LC-i)

Letter of Credit-i (LC-i) is a written undertaking given by bank, on behalf of the buyer/importer (applicant) to the seller/exporter (beneficiary), to pay at sight or at a determinable future date up to a stated sum of money within a prescribed time limit against stipulated documents which must comply with the terms and conditions of the LC-i.

Eligibility: all business entity that has Shariah compliant import and/or export transactions.

Purpose: An instrument issued by the Bank to facilitate Shariah compliant imports and purchases of goods and services.

Fees & Charges:

Type of fee/charges Rate/Cost
Issuance 0.1% per month or part thereof (min RM50) or as per Letter of Offer
Amendment

Increase in value and/or extension of expiry date:
0.1% per month or part thereof (min RM50) or as per Letter of Offer

Others: RM50 flat

Usance/Acceptance 0.1% per month or part thereof from LC-i expiry date to usance expiry date (min RM50) or as per Letter of Offer
Cancellation (prior to LC-i expiry date) RM50
SWIFT

Issuance: Local RM50 Foreign RM75

Others: RM25

RENTAS RM5
General expenses (Courier) Actual cost

Note: The fees and charges are not inclusive of 6% GST

PDS: Letter of Credit-i.pdf

Shipping Guarantee-i (SG-i)

Shipping Guarantee-i (SG-i) is a facility granted by the Bank to the customer (importer) for the clearance of Shariah compliant goods (purchased under our Letter of Credit-i) at the sea port or airport, without the presentation of the original Bill of Lading or Airway Bill. The Bank will issue a SG-i in favor of the Shipping Company/Agent to enable the customer (the importer), consignee or buyer to take delivery of the goods merchandise in the absence of the original Bill of Lading or Airway Bill.

Eligibility: all business entity that has Shariah compliant import and/or export transactions.

Purpose: An indemnity counter-signed by the Bank as interim to the original Bill of Lading or Airway Bill

Fees & Charges:

Type of fee/charges Rate/Cost
Issuance 0.1% flat on invoice amount (min RM50)
Non-returned SG-i After 3 months from date of issuance: 0.5% p.a. will be charged and subsequently 3 months thereafter until the return of the SG-i (min RM50)
Endorsement of Bill of Lading and Airway Bill 0.1% flat on invoice amount
Stamp duty Actual cost
General expenses (Courier) Actual cost

Note: The fees and charges are not inclusive of 6% GST

PDS: Shipping Guarantee-i.pdf

Inward Bills Collection-i (IBC-i)

Inward Bills Collection-i (IBC-i) is a service offered by the bank for handling of inward documents i.e. commercial documents and others (local and foreign) received from a Remitting Bank or directly from drawer (seller/exporter) for presentation to drawee (buyer/importer) for payment at sight or acceptance of usance Bill of Exchange for payment at a future date.

Eligibility: all business entity that has Shariah compliant import and/or export transactions.

Purpose: A service by the Bank to handle import documents issued by the Seller or the Seller's Bank

Fees & Charges:

Type of fee/charges Rate/Cost
Commission / Amendment 0.1% of invoice amount (Min RM50, Max Local: RM500 Foreign: RM100)
Release free of payment RM120
Redirect to another bank RM120
Protest bill Actual cost
SWIFT RM25
RENTAS RM5
General expenses (Courier) Actual cost

Note: The fees and charges are not inclusive of 6% GST

PDS: Inward Bills Collection-i.pdf

Murabahah Working Capital Financing (MWCF)

Murabahah Working Capital Financing (MWCF) is a working capital financing facility to finance purchases/importation of Shariah compliant goods, raw materials, etc. as required by the customer (buyer/importer) for its business operations against Letter of credit-i issued by the Bank or under open account basis.

Eligibility: all business entity that has Shariah compliant import and/or export transactions.

Purpose: A short term financing to finance purchases/importation made by the Customer

Fees & Charges:

Type of fee/charges Rate/Cost
RENTAS RM5
IBG (as per over the counter) RM2
SWIFT RM25
Stamp duty Actual cost
General expenses (Courier) Actual cost

Note: The fees and charges are not inclusive of 6% GST

PDS: Murabahah Working Capital Financing.pdf

Export Letter of Credit-i (ELC-i)

Export Letter of Credit-i (ELC-i) is a service provided by the Bank to advise letter of credit-i/letter of credit received from a correspondent bank (upon checking the apparent authenticity of the letter of credit-i/letter of credit) to the customer/seller/exporter (beneficiary).

Eligibility: all business entity that has Shariah compliant import and/or export transactions.

Purpose: A service by the Bank to authenticate and advise the Letter of Credit-i/Letter of Credit to the customer.

Fees & Charges:

Type of fee/charges Rate/Cost
Advising RM50
Amendment RM50
Transferable 0.15% - 2% on documentary credit transferred amount
SWIFT RM25
General expenses (Courier) Actual cost

Note: The fees and charges are not inclusive of 6% GST

PDS: Export Letter of Credit-i.pdf

Export Letter of Credit Confirmation-i (ELCC-i)

In addition to the service provided by the Bank to customer/seller/exporter (beneficiary) to advise Export Letter of Credit-i/Letter of Credit receives from correspondent bank upon checking the apparent authenticity of the credit, the advising bank may be requested to add its confirmation to the Export Letter of Credit-i/Letter of Credit.

By confirming the Export Letter of Credit-i/Letter of Credit, the bank assumes the same responsibilities as the issuing bank. This includes the obligation to pay against the presented documents if they are in order and all the terms and conditions in the Export Letter of Credit-i/ Letter of Credit are met.

Eligibility: all business entity that has Shariah compliant import and/or export transactions.

Purpose: A service by the Bank to add confirmation to Export Letter of Credit-i/Export Letter of Credit at customer's request

Fees & Charges:

Type of fee/charges Rate/Cost
Confirmation Rate to be determined by the Bank's Correspondence Banking based on bank and country risk
SWIFT RM25
General expenses (Courier) Actual cost

Note: The fees and charges are not inclusive of 6% GST

PDS: Export Letter of Credit Confirmation-i.pdf

Outward Bills Collection-i (OBC-i)

Outward Bills Collection-i (OBC-i) is a service provided where the Bank shall act as an agent/‘wakil’ and shall be responsible in providing services of sending financial and commercial documents submitted by the drawer (seller/exporter) for collection of payments from the drawee (buyer/importer) via the collecting bank under the terms and conditions agreed between the buyer and seller.

Eligibility: all business entity that has Shariah compliant import and/or export transactions.

Purpose: A service by the Bank to forward export documents to Buyer's Bank

Fees & Charges:

Type of fee/charges Rate/Cost
Commission 0.1% flat of invoice amount (Min RM50, Max Local: RM500 Foreign: RM100)
Instruction amendment RM50
Document checking (against LC-i) RM50
Returned documents RM120
Non-payment/Non-acceptance (more than 60 days) RM120
SWIFT RM25
General expenses (Courier) Actual cost

Note: The fees and charges are not inclusive of 6% GST

PDS: Outward Bills Collection-i.pdf

Outward Bills Financing-i (OBF-i)

Outward Bills Financing-i (OBF-i) is a short-term financing. Facility made available to drawer (seller/exporter) under Outward Bills Collection-i as a mean to provide the working capital needed pending receipt of the sales/export proceeds.

Eligibility: all business entity that has Shariah compliant import and/or export transactions.

Purpose: A short term financing to finance sales made by the customer

Fees & Charges:

Type of fee/charges Rate/Cost
RENTAS RM5
IBG (as per over the counter) RM2
SWIFT RM25
General expenses (Courier) Actual cost

Note: The fees and charges are not inclusive of 6% GST

PDS: Outward Bills Financing-i.pdf

Credit Bills Financing-i (CBF-i)

Credit Bills Financing-i (CBF-i) is a short-term financing facility made available to customer [seller/exporter (beneficiary)] under Export Letter of Credit-i as a mean to provide the working capital needed pending receipt of the sales/export proceeds provided the set of documents presented comply and confirm to the terms and condition of the Export Letter of Credit-i.

Eligibility: all business entity that has Shariah compliant import and/or export transactions.

Purpose: A short term financing to finance sales made by the Customer (for Letter of Credit)

Fees & Charges:

Type of fee/charges Rate/Cost
RENTAS RM5
IBG (as per over the counter) RM2
SWIFT RM25
General expenses (Courier) Actual cost

Note: The fees and charges are not inclusive of 6% GST

PDS: Credit Bills Financing-i.pdf

Tawarruq Trade Financing (TTF)

TTF is to finance customer's purchases/importation, sales/exportation, raw materials, intangible goods or services that is Shariah compliant. as required by the customer (buyer/importer/seller/exporter) for its business operations against Letter of Credit-i issued by the Bank or under open account basis.

Eligibility: all business entity that has Shariah compliant import and/or export transactions.

Purpose: A short term financing to finance purchases and sales of Shariah compliant goods or services

Fees & Charges:

Type of fee/charges Rate/Cost
RENTAS RM5
IBG (as per over the counter) RM2
SWIFT RM25
General expenses (Courier) Actual cost

Note: The fees and charges are not inclusive of 6% GST

PDS: Tawarruq Trade Financing.pdf

Bank Guarantee-i (BG-i)

Bank Guarantee-i (BG-i) is a facility granted by the Bank as an undertaking to pay the beneficiary of the BG-i an agreed sum if the Bank’s customer fails or defaults in fulfilling their obligations under the terms and conditions of the contract or agreement entered with the beneficiary.

Eligibility: all business entity that has Shariah compliant import and/or export transactions.

Purpose: An instrument issued by the Bank to provide guarantee to a third party on behalf of the Customer

Fees & Charges:

Type of fee/charges Rate/Cost
Issuance As per Letter of Offer, 0.05% per month or min RM50 (whichever is higher)
Amendment

Increase in value and/or extension of expiry date:

As per Letter of Offer, 0.05% per month or min RM50 (whichever is higher)

Others: RM50

SWIFT

Issuance: Local RM50 Foreign RM75

Others: RM25

Stamp duty Actual cost
General expenses (Courier) Actual cost

Note: The fees and charges are not inclusive of 6% GST

PDS: Bank Guarantee-i.pdf