| Purpose |
The financing shall cover purchase of raw materials, components, production overhead and finished goods during pre-shipment period. This shariah compliant short term trade facility is also available to finance exporters’ working capital requirement during post-shipment period pending receipt of export proceeds. |
| Benefit To Customer |
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Enable exporters to grow their international business and |
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Enable exporters to be competitive with flexible credit period. |
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| Type of Financing |
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Pre-shipment - working capital for purchase of domestic/foreign inputs prior to shipment. |
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Post-shipment – working capital financing after shipment. |
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| Margin of Financing |
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Pre-shipment - up to 85% of export order value. |
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Post-shipment – up to 100% of export bill. |
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| Tenor |
Pre-Shipment – up to 120 days [a longer tenor may be allowed depending on the merit of the case].
Post-Shipment – up to 180 days [a longer tenor may be allowed depending on the merit of the case]. |
| Profit Rate |
Cost of fund plus spread. The spread shall be based on the risk rating of the company and other non- quantitative considerations. |
| Repayment |
Against export proceed |
| Security |
Any but not limited to the following:
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Corporate Guarantee; |
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Shareholders and/or Directors guarantee; |
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Landed property; |
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Charge on fixed and/or floating assets of customers and |
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Assignment of Takaful/insurance policies, agreements, contract proceeds, rights and benefits. |
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