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Islamic Letter of Credit

Bank acts as per your instructions for your purchases to secure goods and manage payment risks.
Riyad Bank’s Islamic Letter of Credit is a Shari’a compliant method that enables you to import goods on the basis of Murabaha. It facilitates conduct of your import.

  • Secured and fully transparent
  • Offers all the functionalities of the traditional Letter of Credit
  • Convenience to make payment on arrival of documents (Sight LC) or after an agreed time period under Islamic structure.
  • Upon the receipt , the bank sells goods to the importer on Murabaha basis at agreed price including, profit and fees
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Riyad Bank issues Islamic Letters of Credit on behalf of the importer as per the conditions and all information provided such as currency, amount, description of goods, payment type, required document and other terms.

Payment is then made against presentation of satisfactory documents which follows by Riyad Bank selling the imported goods to the client.

  • Issued on the basis of Murabaha
  • Offers all the functionalities of traditional Letter of Credit
  • Secures and binds the “sale” strictly to the agreement

All Trade Finance customers are eligible and an Islamic Letter of Credit facility can be arranged by our Corporate banking relationship team.

To apply please approach any one of our Trade Finance Centers or call us directly on:

  • Central region: +966-11-401-3030 (Ext.: 9413 or Ext.: 8643 or Ext.: 3463)
  • Western region: +966-12-2609060 or +966-12-2609094 or +966-12-2609035
  • Eastern region: +966-13-8335733 (Ext: 8539 or Ext: 8540)
Rates & fees are standardized, while some are market determined or customer specific.

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Apply Online - Islamic Letter of Credit

Bank acts as per your instructions for your purchases to secure goods and manage payment risks.
Riyad Bank’s Islamic Letter of Credit is a Shari’a compliant method that enables you to import goods on the basis of Murabaha. It facilitates conduct of your import.
 

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