Business

Trade Financing

Enabling Brunei's entrepreneurs to become more competitive in international trade
 

Overview

At BIBD, we offer a wide range of competitive, Shariah-compliant trade financing products and services on a short-term basis. These products are geared towards facilitating the business expansion of Brunei's entrepreneurs. Whether you are a local or foreign entrepreneur, we value your contribution to our economy, and we would like to help you get ahead.
 

Products Offered

Letter of Credit
  • Wakalah Contract (Agent)

    The Bank acts as a purchasing agent on behalf of the buyer/applicant who will place deposit to the full amount of goods to be purchased. The Bank will establish Letter of Credit and remits the payments to the seller/beneficiary utilizing the deposit made by the buyer/applicant.

  • Murabaha Contract (Deferred Lump Sum-Sale)

    The Bank acts as the financier for the buyer/applicant who is appointed as purchasing agent for the goods on behalf of the Bank. The Bank will establish Letter of Credit and remit the payment to the seller/beneficiary using the Bank own funds. The Bank will then sell the goods to the buyer/applicant at a sale price comprising its cost and profit margin. The Bank will allow the buyer/applicant a deferred payment term for the settlement of the purchase under LC Murabaha arrangement (Trust Receipt).

Trust Receipt
  • Based on Shariah Contract of Murabaha (cost plus financing), this is a financing product to complement the issuance of Letter of Credit for purchases or importations of goods.
Collection Bills
  • This is a financing product offered as other alternative to Letter of Credit. This financing provides the buyer/importer the mean of funding the purchase of raw materials and other trade-able goods locally and/or imported from overseas. For the seller/exporter, the financing offered a means to finance their sales/export of goods on credit term and obtain required cash flow for operation.
Shipping Guarantee
  • This is a facility provided by the Bank which indemnifies and guarantees the shipping company for the release of goods to the buyer/importer in the absence/without presentation of Bill of Lading.
FX Hedging
  • This facility is provided by the Bank to compliment the trade facilities granted to the customer. The facility provides the customer a means to hedge themselves against the probability of loss from fluctuations in exchange rate of foreign currencies. This facility is given strictly for the purpose of advance booking of exchange rate to facilitate future payments of LCs, bills and other trade instruments only.

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