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 by a bank, given to the exporter/seller (the beneficiary) at the request and on the instruction of the importer/buyer (the applicant), to pay at sight or at a determinable future date up to a stated sum of money within a prescribed time limit and 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

Note: All fees/charges are subject to 8% service tax, where applicable.

PDS: Letter of Credit-i

Cut Off Time

Application received by 1:00 pm* will be processed on the same day.

* Subject to all documents are in order and terms and conditions are complied

Shipping Guarantee-i (SG-i)

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

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 Bil

Fees & Charges

Note: All fees/charges are subject to 8% service tax, where applicable.

PDS: Shipping Guarantee-i

Cut Off Time

Application received by 1:00 pm* will be processed on the same day.

* Subject to all documents are in order and terms and conditions are complied

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 payment at a future date by acceptance of usance Bill of Exchange.

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: All fees/charges are subject to 8% service tax, where applicable.

PDS: Inward Bills Collection-i

Cut Off Time

Application received by 1:00 pm* will be processed on the same day.

* Subject to all documents are in order and terms and conditions are complied

Murabahah Working Capital Financing (MWCF)

Murabahah Working Capital Financing (MWCF) is a working capital financing facility to finance purchases/importation of Shariah compliance 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: All fees/charges are subject to 8% service tax, where applicable.

PDS: Murabahah Working Capital Financing

Cut Off Time

Application received by 12:00 pm* will be processed on the same day.

* Subject to all documents are in order and terms and conditions are complied

Export Letter of Credit-i (ELC-i)

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

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: All fees/charges are subject to 8% service tax, where applicable.

PDS: Export Letter of Credit-i

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

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

By adding the confirmation, the advising or another bank assumes the same responsibilities as the Issuing Bank. This includes the obligation to pay against presented documents if they are in order and all of the terms in the Export Letter of Credit-i (ELC-i) are met. In effect, the beneficiary has the individual promise of two banks, (Issuing Bank and the confirming bank) to pay against documents in order as per all terms in the ELC-i

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: All fees/charges are subject to 8% service tax, where applicable.

PDS: Export Letter of Credit Confirmation-i

Cut Off Time

Application received by 1:00 pm* will be processed on the same day.

* Subject to all documents are in order and terms and conditions are complied

Outward Bills Collection-i (OBC-i)

Outward Bills Collection-i (OBC-i) is 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: All fees/charges are subject to 8% service tax, where applicable.

PDS: Outward Bills Collection-i

Cut Off Time

Application received by 1:00 pm* will be processed on the same day.

* Subject to all documents are in order and terms and conditions are complied

Outward Bills Financing-i (OBF-i)

Outward Bills Financing-i (OBF-i) is a short-term financing for export/outward bills collection. When the drawer (seller/exporter) submits the documents for collection, the Bank, after checking the documents will finance the bill amount.

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: All fees/charges are subject to 8% service tax, where applicable.

PDS: Outward Bills Financing-i

Cut Off Time

Application received by 12:00 pm* will be processed on the same day.

* Subject to all documents are in order and terms and conditions are complied

Credit Bills Financing-i (CBF-i)

Credit Bills Financing-i (CBF-i) is a short-term financing for export bills drawn under Export Letter of Credit-i (ELC-i). The financing is made available to the customer [seller/exporter (beneficiary of the ELC-i)] based on the bill amount upon the submissions of the drafts and documents in compliance with the terms and conditions of the ELC-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: All fees/charges are subject to 8% service tax, where applicable.

PDS: Credit Bills Financing-i

Cut Off Time

Application received by 12:00 pm* will be processed on the same day.

* Subject to all documents are in order and terms and conditions are complied

Tawarruq Trade Financing (TTF)

Tawarruq Trade Financing (TTF) is a facility 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: All fees/charges are subject to 8% service tax, where applicable.

PDS: Tawarruq Trade Financing

Cut Off Time

Application received by 12:00 pm* will be processed on the same day.

* Subject to all documents are in order and terms and conditions are complied

Bank Guarantee-i (BG-i)

Bank Guarantee-i (BG-i) is a facility granted by the Bank only for Shariah Compliant purposes and activities as an undertaking to pay the beneficiary of the BG-i an agreed sum if the 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: All fees/charges are subject to 8% service tax, where applicable.

PDS: Bank Guarantee-i

Cut Off Time

Application received by 12:00 pm* will be processed on the same day.

* Subject to all documents are in order and terms and conditions are complied