Trade Operations

Overview:

Alinma Bank’s solutions for international trade operations facilitate the growth of  your business in the global environment through the provision of the following:

  1. Shipping Guarantees (SG) and Generic Letters of Guarantee (LG).
  2. Import Letters of Credit that include sight/acceptance of Musharaka LCs and Export LCs.
  3. Documentary Letters of Credit under collection.

International Transaction Services:

  • Letters of Guarantee (LG)
    An LG is letter from the bank stating that a customer owns a particular security and that the bank will guarantee delivery of that security. An LG is used by an investor who is writing call options when an underlying stock is not in his or her brokerage account.

  • You can now issue Letters of Guarantee for your facility electronically through the Etimad platform

    Bank guarantee Issuance Mechanism:
  • Log in to “Etimad” platform
  • Choose a bank guarantee service
  • Apply for a bank guarantee from Alinma bank
  • The bank issues the requested bank guarantee
  • The Etimad platform automatically links the issued bank guarantee to the government competition
  • Advantages of the bank guarantee service:
  • Managing bank guarantees electronically
  • Auto-link bank guarantees with government competition
  • Automatic cancellation of preliminary guarantees for non-winning competitors immediately after awarding
  • To use the service, click here

  • Documentary Credits
    Import Letters of Credit:  Specifically to import goods from a country other than that of the issuing bank. In rare cases it might be used as a local LC for certain projects, such as site building projects as well as industrial area projects.

    Export Letters of Credit:A series of services provided to an exporter by the bank in the exporter’s country after it receives an LC from the issuing bank. This includes advising LCs as well as taking up and examining documents, presentations, reimbursements, etc.

  • Documentary Collection
    The collection, by a bank, of funds due from a buyer against the delivery of documents.  The bank, acting as agent for the seller (exporter), presents documents to the buyer (importer) through that party's bank and, in exchange, receives payment of the amount owed, or obtains acceptance of a time draft for payment at a future date. Documentary collections are of two types: Inward Collections (Alinma functions as either the collecting or presenting bank) and Outward Collections (Alinma functions the remitting bank).
  • Guarantee Verification Service
    This service provides stakeholders the ability to check the status of a guarantee.

Service Forms :

Service Title Download
LG Issuance Form LG Issuance Form 
LC (Musharakah) Issuance Form LC (Musharakah) Form LG,LC Debit Authorization Letter
Outward Documentary Collection Form Outward Documentary Collection Form
LC Amendment Form LC Amendment Request Form
General Conditions for LC Issuance General Conditions for LC Issuance
LC (Irrevocable) Issuance Form LC (Irrevocable) Issuance Form
Shipping Guarantee issuance form Shipping Guarantee issuance Form
Approval of Opening Marine/Air Freight Documentary Credit Approval of Opening Marine/Air Freight Documentary Credit Form
Notice of Opening Local/Land Documentary Credit and Musharaka Disposal Arrangement Notice of Opening Local/Land Documentary Credit and Musharaka Disposal Arrangement Form