Documentary Credits
Secure and reliable documentary credit services for importing goods and raw materials from abroad, backed by Amanat Bank’s expertise and global network.
For Importing Goods and Raw Materials
It is a letter of commitment issued by the opening bank at the request of the applicant (buyer), in which the bank undertakes to pay a certain amount to the beneficiary (seller) upon receipt of documents that comply with the agreed terms stated in the credit.
Classification of Documentary Credits in Terms of Payment or Coverage
Self-Funding Documentary Credit
The value of the credit is covered by the applicant (the customer) from their own resources upon receipt of the documents. The bank opens credits against previously agreed commissions and fees, as well as cash collateral forming a percentage of the credit value or appropriate guarantees provided to the bank.
Murabaha-Financed Documentary Credit
This is a credit that requires prior approval from the bank for Murabaha financing before its issuance and before shipping the goods. Upon submission of a quotation invoice from the supplier, the terms of Murabaha financing are fulfilled in addition to collecting commissions and fees according to the pricing table.
Conditions for Opening Documentary Credits
- A legally registered business activity that includes import within its scope and the type of goods to be imported.
- Availability of cash coverage for the credit value either from the customer’s own sources or bank financing, in addition to commissions and fees.
- The supplier country or the supplier should not be listed on global sanctions lists.
- The supplier’s country must have a correspondent bank approved by our bank.
- No shipment or issuance of cash invoices or bills should occur before the agreement and approval of the bank to open the credit.
- The shipping bills must be issued in the name of the bank.
Need a Documentary Credit?
Contact our trade finance team today to discuss your import requirements and how we can help facilitate your international trade transactions.
Contact Our Trade Finance Team