Strengthening your credit

The importer’s bank irrevocably commits to payment provided that the exporter complies with the terms and specifications of the letter of credit. Al Rajhi Bank advises and negotiates documents and undertakes payment to the exporter, acting on the exporter’s behalf by adding its confirmation to the letters of credit , if required (confirmation of letter of credit).

  • Import Letter of Credit
  • Export Letter of Credit
  • LC Musharaka
  • LC Murabaha

Ready to apply for your Letter of Credit?

Lets get started. What type of letter are you looking for?

  • Import LC
  • Export LC
  •  Murabaha LC
  • Musharaka LC

Here are the transaction mechanism ….

    Al Rajhi Bank issues, amends, confirms and pays both sight and acceptance letters of credit through its extensive network of correspondent bank relationships

 

For more enquiries please contact:

      Corporate Business group

      Central Operation Department

Al Rajhi bank - Amman - Jordan

      Telephone: + 962 6 510 0800

      Fax: + 962 6 566 9911

Location: Shmeissani, Abdul Hameed Sharaf Street, building number 67

Export & Import Letters of Credit Fees and charges 

                Import Letters of Credit Fees and charges

LC Issuance / Amendment (Value/Period) Commission 0.50% for each period (3months) minimum 50JOD
Amendment other than value / period 50 JOD
Issuance (Swift)  30 JOD
 Discrepancy fee  100 JOD (or equivalent in other currencies)
 Reimbursement charges  100 USD
 Acceptance of beneficiary's draft  40 JOD
 Cancellation of LC (Partially utilized)  50 JOD
 Cancellation without utilization  50 JOD
 Shipping Guarantee issuing commission  40 JOD
 Endorsement on Airway/Bill of lading 40 JOD
 Cancellation of shipping guarantee  25 JOD
 Musharaka Commissions  to be set by credit dept
 File maintenance Fees  25 USD
 

Note:

1. LC issuing or amending (value /period) commission payable in full upfront except Murabaha and Musharaka L/C's.

2. If LC specifies tolerance, commission will be calculated additionally on the increased value.

3. confirmation commission if born by applicant will be claimed upon confirming bank request, it may be claimed directly or otherwise at the time of utilization so it is subject to confirming bank rates

 Export Letters of Credit Fees and charges
 Export LC advising 0.2% (minimum 50 JOD) 
 Export LC pre-advising - Short messages  50 JOD
 Negotiation Under Confirmed L/C  0.5% (minimum 50 JOD)
 LC Transfer charges (Transferable L/C)  0.5% (minimum 200 JOD)
 Export LC amendment - other  50 JOD
 Acceptance of beneficiary's draft  40 JOD
 reimbursement charges for correspondents  100 JOD
 Negotiation of export LC bill (Unconfirmed L/C)  0.375% (minimum 50 JOD)
 Sending documents under LC on collection basis  0.375% (maximum 200JOD) (minimum 30JOD)
 Assignment of proceeds comm  0.2% (minimum 50 JOD)
 Bill settlement / RTGS payment  25 JOD
 Export LC cancellation  25 JOD
 Transfer Swift charges  30 JOD
 Fate enquiry / tracer (Swift)  15 JOD
 Courier outside HKJ  50 JOD
 Courier inside HKJ  25 JOD

 

 

 

 

 

 

Here are the Transaction Mechanism…   

     Al Rajhi submits export letters of credit authenticating and advising the establishment of the letter of credit to the beneficiary (exporter, Al Rajhi’s client).

     The bank manages the collection cycle for the beneficiary through its extensive network.

      Al Rajhi Bank confirms irrevocable letters of credit where the bank undertakes to pay the letter of credit amount, assuming all terms and conditions have been                     complied with.

For more enquiries please contact:

      Corporate Business group

      Central Operation Department

Al Rajhi bank - Amman - Jordan

      Telephone: + 962 6 510 0800

      Fax: + 962 6 566 9911

Location: Shmeissani, Abdul Hameed Sharaf Street, building number 67

Export LC Fees and Charges

Pre-Advising (Short Message)

JOD 50 FLAT

Click to view list of our fees and charges

Click to hide the list of our fees and charges

Hide Details

Show Details

Maximum Advising Rate 0.002% FLAT
Minimum Advising Rate 0.001% FLAT (not less than JOD 50)
Maxiumum Negotiation Under Confirmed
LC Rate
0.50% FLAT
Minimum Negotiation Under Confirmed LC
Rate
0.25% FLAT (not less than JOD 50)
Transfer Charges 0.50% FLAT (not less than JOD 200)
Maximum Amendment Rate (For Increase
in Amount)
0.002% FLAT
Minimum Amendment Rate (For Increase in
Amount)
0.001% FLAT (not less than JOD 50)
Acceptance of Beneficiary's Draft JOD 40 FLAT
Amendment (Other) JOD 50 FLAT
Reimbursement Charges for
Correspondents
JOD 100 FLAT
Maximum Rate for Negotiation of Export
LC Bill
0.375% FLAT
Minimum Rate for Negotiation of Export LC
Bill
0.25% FLAT (not less than JOD 50)
Maximum Rate of Sending Documents
Under LC on Collection Basis
0.375% FLAT (from JOD 30 to JOD 200)

Minimum Rate of Sending Documents Under LC on Collection Basis

0.25% FLAT
Maximum Rate for Assignment of Proceeds
Comm.
0.002% FLAT
Minimum Rate for Assignment of Proceeds
Comm.
0.001% FLAT (not less than JOD 50)
Bill Settlement/RTGS Payment JOD 25 FLAT
Cancellation Fee JOD 25 FLAT

Here are the transaction mechanism …

After the Murabaha LC is opened, when the goods arrive, there are two options available to the importer.

      o Al Rajhi Bank sells its share through Murabaha to the customer on cash                 payment or deferred basis at an agreed profit margin.
      o Al Rajhi Bank sells its share in the market. 

For more enquiries please contact:

      Corporate Business group

      Central Operation Department

Al Rajhi bank - Amman - Jordan

      Telephone: + 962 6 510 0800

      Fax: + 962 6 566 9911

Location: Shmeissani, Abdul Hameed Sharaf Street, building number 67

Musharaka LC Fees and Charges

Maximum Issuance/Amendment Commission Rate

0.50% per 3 months or any part thereof

Click to view list of our fees and charges

Click to hide the list of our fees and charges

Hide Details

Show Details

Minimum Issuance/Amendment Commission Rate 0.25% per 3 months or any part thereof (not less than JOD 50)
Issuance (Swift) JOD 30 FLAT
Amendment (Other than Value/Period) JOD 50 FLAT
Amendment (Swift) JOD 15 FLAT
Negotiation of Bills No fees
Musharakah Commission To be set by credit dept
Discrepancy Fee JOD 100 FLAT
Reimbursement Charges To be deducted out of proceeds (when Al Rajhi is acting as reimbursing bank) - USD 100
Acceptance of Beneficiary's Draft JOD 40 FLAT)
Cancellation Fee (Partially Utilized) JOD 50 FLAT
Cancellation Fee (Not Utilized) JOD 50 FLAT

*LC issuing or amending (value/period) commission payable in full upfront except for Murabaha LC's.

*If LC specifies tolerance, commission will be calculated additionally on the increased value.

*Confirmation commission, if born by applicant, will be claimed upon confirming bank request. It may be claimed directly or otherwise at the time of utilization so it is subject to confirming bank rates LC Amendment Commission.

Here are the transaction mechanism…

After the Musharaka LC is opened, when the goods arrive, there are three options available to the importer:

             o Al Rajhi sells its share through Musharaka to the customer on cash                        payment or deferred basis at an agreed margin.
             o The customer sells its share to Al Rajhi Bank on a cash payment or                        deferred basis
             o Both sell their shares in the market together

 

Al Rajhi issues, amends, confirms and pays both sight and acceptance letters of credit through its extensive network of correspondent bank relationships.

For more enquiries please contact:

      Corporate Business group

      Central Operation Department

Al Rajhi bank - Amman - Jordan

      Telephone: + 962 6 510 0800

      Fax: + 962 6 566 9911

Location: Shmeissani, Abdul Hameed Sharaf Street, building number 67

Murabaha LC Fees and Charges

Maximum Issuance/Amendment Commission Rate

0.50% per 3 months or any part thereof

Click to view list of our fees and charges

Click to hide the list of our fees and charges

Hide Details

Show Details

Minimum Issuance/Amendment Commission Rate 0.25% per 3 months or any part thereof (not less than JOD 50)
Issuance (Swift) JOD 30 FLAT
Amendment (Other than Value/Period) JOD 50 FLAT
Amendment (Swift) JOD 15 FLAT
Negotiation of Bills No fees
Musharakah Commission To be set by credit dept
Discrepancy Fee JOD 100 FLAT
Reimbursement Charges To be deducted out of proceeds (when Al Rajhi is acting as reimbursing bank) - USD 100
Acceptance of Beneficiary's Draft JOD 40 FLAT)
Cancellation Fee (Partially Utilized) JOD 50 FLAT
Cancellation Fee (Not Utilized) JOD 50 FLAT

*LC issuing or amending (value/period) commission payable in full upfront except for Murabaha LC's.

*If LC specifies tolerance, commission will be calculated additionally on the increased value.

*Confirmation commission, if born by applicant, will be claimed upon confirming bank request. It may be claimed directly or otherwise at the time of utilization so it is subject to confirming bank rates LC Amendment Commission.

Frequently Asked Questions:
Letter of Credit
  • What is the advantage of using a LC?
    It is used to secure payment for the seller and protects buyer by evidencing goods that have been shipped/ transported.
  • What are the international customs governing letters of credit?
    Uniform customs and practices for documentary credits ( ICC publication 600 ).
  • What are the Uniform customs and practice for Documentary credits ( UCP )?
    The UCP is a set of internationally recognized rules for documentary credits published by the International Chamber of Commerce (ICC) in France, these rules are used in the international trade community for determining the roles and responsibilities of all parties involved in Letters of Credit.