Islamic Trade Financing

Islamic Trade Financing

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

Product List:

Letter of Credit-i (LC-i)

Letter of Credit-i (LC-i) is a written undertaking issued by the bank to the seller/exporter (beneficiary) at the request of the buyer/importer (applicant) to pay a sum of money in return for documents presented to the Bank within a specified period and in compliance with the terms and conditions as stated in the Letter of Credit-i.

Eligibility

All business entities engaged in Shariah-compliant import and/or export transactions.

Purpose

An instrument issued by the Bank to facilitate Shariah-compliant import and purchase of goods and services.

Fees & Charges

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

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

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

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

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

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

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

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

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

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

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

PDS: Bank Guarantee-i.pdf