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

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    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

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    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.