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
| 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: 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
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 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
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 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
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 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
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 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
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
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
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 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
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. 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
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 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
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)
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
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 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: 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
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
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