Services offered by LC department
Badr presents services which support Import and Export operations maintaining a high standard of accuracy and speed. For this purpose, we utilize an expansive network of international banking correspondents with vast experience in this field.
| Letter of Credit by Sight(Wakala) | This type of LC creates security to the exporter and facilitates the payment mechanism in international trade transactions. Badr acts as an intermediary between the exporter and the importer and, on receipt of documents as specified in the terms of the LC, releases payment to the exporter thereby ensuring a reliable and secure medium of transaction for both the importer and the exporter. |
| Letter of Credit on Acceptance basis (Wakala) | This type of LC allows the importer to settle the draft to the beneficiary after receiving the goods or documents in UAE against an acceptance which may vary from 60 to 90 days depending on the usance period agreed. |
| Murabaha L/C | This kind of L/C allows the bank to import goods in its name on behalf of the importer. When goods arrive, Badr enables the Customer to buy the goods on a deferred payment basis at the Murabaha price which is inclusive of the original cost of goods plus an agreed profit amount. The Murabaha price is to be repaid by the customer after a pre-determined period in full or can be paid in installments. |
| Musharaka L/C | In this kind of L/C both the Bank and the customer enter into a partnership or Musharaka for purposes of import of goods. The customer will place a margin with the Bank which will serve as the customer’s contribution in the Musharaka. |
| Letter of Guarantees(Kafala) | Badr can issue different types of Letter of Guarantees e.g. Bid Bonds, Performance, Advance Payment, Maintenance Contract and Financial Guarantees for its Corporate Customers. In order to assist with Regulatory requirements for our customers Badr can also issue Labor and Customs Guarantees as well. |
| Bills for Collection | Badr acts as an intermediary to collect documents for Companies, Persons, Institutions etc. which we will deliver as per the instructions received along with these documents. |