Islamic Banking - Islamic Trade Finance - Standard Chartered Bank Malaysia Berhad

Imagine a trading environment where you can be sure of timely payments from your buyers and minimize concerns about paying your suppliers. Think how much easier your business would be if your domestic trade ran smoothly, your exports were processed fast and accurately, and your imports were cleared quickly on favourable terms. Not to mention doing all this without foregoing the essence of the Islamic values. We have all the syariah compliant products needed to enhance and help you in your trading.

Letter Of Credit-i (LC-i)
Bank Guarantee-i (BG-i)
Shipping Guarantee-i (SG-i)
Trade Murabahah-i (TM-i)
Local Bills Discounting (LBD-i)
Accepted Bills-i (AB-i) (Purchase/Sale)

Letter Of Credit-i (LC-i)

A written undertaking given by a bank to a seller (local/ foreign) at your request in making payment to the seller on your behalf at a determinable future date. Based on the Islamic concept of wakalah where it is an agency relationship and one party is appointed an agent on behalf of the other party.

Bank Guarantee-i (BG-i)

An undertaking by the Bank to pay the beneficiary of the BG-i of an agreed sum if the bank's customer fails or defaults in fulfilling their obligations under the terms and conditions of the contract or agreement entered with the beneficiary. Based on the Islamic concept of Kafalah where it is a contract of guarantee or surety given by one party to discharge the liability of a third party in the case of default.

Shipping Guarantee-i (SG-i)

Shipping Guarantee is an indemnity given by the customer, countersigned by the Bank, to a shipping company or its agent to allow the shipping company to release the merchandise to the consignee named in the Bill of Lading without the presentation of the original Bill of Lading. Similar to BG-i, it is based on the Islamic concept of Kafalah where it is a contract of guarantee or surety given by one party to discharge the liability of a third party in the case of default.

Trade Murabahah-i (TM-i)

This product provides you the working capital to finance the purchase/ importation of goods, raw materials, machinery, etc for your business operations. Based on the Islamic concept of murabahah, where it is known as mark-up sale financing, it is a contract entered between buyer (the Customer) and seller (SCB), where the Bank will sell goods on deferred term to the buyer at an agreed selling price that comprises the Bank's purchase price and profit margin. The Bank will pay the cost price of goods direct to the supplier and the customer will settle the Bank's selling price on lump sum basis at an agreed date in the future.

Local Bills Discounting (LBD-i)

This product provides you working capital by allowing the Bank purchase your debt through discounting. The proceeds from the sale serve as working capital to finance your sales/exports. The product is based on the Islamic concept of Bai'Dayn where it is a sale of debt arising from a trade transaction. Debt created from transaction is evidenced by a bill of exchange drawn by the seller and accepted by the buyer to mature on determinable future date.

Accepted Bills-i (AB-i) (Purchase/ Sale)

A facility where we finance the purchase/importation of goods, raw material, machinery, etc for your business operations. (PURCHASE).

A facility granted by the Bank to its customer whereby the Bank purchases the debt through discounting the customer's right to the debt arising out of usance export documents with recourse to the customer. (SALE)

Based on the Islamic concept of Murabahah for purchase and Bai'al Dayn for sale.
Accepted bills can be traded by us in the secondary market.