Trade Financing
Enabling Brunei's entrepreneurs to become more competitive in international trade
Overview
At BIBD, we offer a wide range of competitive, Shariah-compliant trade financing products and services on a short-term basis. These products are geared towards facilitating the business expansion of Brunei's entrepreneurs. Whether you are a local or foreign entrepreneur, we value your contribution to our economy, and we would like to help you get ahead.
Products Offered
- Wakalah Contract (Agent)
The Bank acts as a purchasing agent on behalf of the buyer/applicant who will place deposit to the full amount of goods to be purchased. The Bank will establish Letter of Credit and remits the payments to the seller/beneficiary utilizing the deposit made by the buyer/applicant.
- Murabaha Contract (Deferred Lump Sum-Sale)
The Bank acts as the financier for the buyer/applicant who is appointed as purchasing agent for the goods on behalf of the Bank. The Bank will establish Letter of Credit and remit the payment to the seller/beneficiary using the Bank own funds. The Bank will then sell the goods to the buyer/applicant at a sale price comprising its cost and profit margin. The Bank will allow the buyer/applicant a deferred payment term for the settlement of the purchase under LC Murabaha arrangement (Trust Receipt).
- Based on Shariah Contract of Murabaha (cost plus financing), this is a financing product to complement the issuance of Letter of Credit for purchases or importations of goods.
- This is a financing product offered as other alternative to Letter of Credit. This financing provides the buyer/importer the mean of funding the purchase of raw materials and other trade-able goods locally and/or imported from overseas. For the seller/exporter, the financing offered a means to finance their sales/export of goods on credit term and obtain required cash flow for operation.
- This is a facility provided by the Bank which indemnifies and guarantees the shipping company for the release of goods to the buyer/importer in the absence/without presentation of Bill of Lading.
Click to view General Wakalah Terms & Conditions of Deposit Products in English and Malay.