Import Letter of Credit
Product Definition
An instrument issued by Al Rajhi Bank in favor of a beneficiary (exporter) on behalf of the applicant (importer), Al Rajhi Bank commits to pay (accept to pay) against trade documents drawn in compliance with the letter of credit terms. Al Rajhi Bank’s credit worthiness replaces that of the applicant.
Features and Benefits
- The importer ensures that payment will only be undertaken of the exporter complies with the terms and specifications of the letter of credit
- Security to the Exporter if there are risks involved or political concerns
- Immediate notification to importer upon receipt of documentation
- Importer improves his negotiating position through Al Rajhi Bank’s payment guarantee
Transaction Mechanism
Al Rajhi Bank issues, amends, confirms and pays both sight and acceptance letters of credit through its extensive network of correspondent bank relationships.
