Trade Financing

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

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

It is an undertaking given by the Bank on behalf of the Customer/Applicant to the Seller, to pay a certain sum of money to the Seller as stipulated in the Letter of Credit (LC), provided that the Seller complies with the terms and conditions of LC.

Collection Bills

It is one of BIBD trade services to facilitate Customer/Applicant in collecting payment from the third party. Bills of Collection can be Inwards Bills of Collection (IBC) and Outwards Bills of Collection (OBC).

Banker's Guarantee

It is a surety given by the Bank upon request of the Customer/Applicant to pay a certain amount of money to the third party in the case customer defaults in fulfilling his/her obligation.

Shipping Guarantee

It is an indemnity given by the Bank upon request of the Customer/Applicant which indemnifies and guarantees the shipping company for the release of goods to the Customer/Applicant in the absence or without the presentation of Bill of Lading.

Shariah Concept

Letter of Credit


Wakalah refers to an agency contract, where a party authorizes another party to act on behalf. Under this concept, the Bank acts as the payment agent on behalf of the Customer for the issuance of Letter of Credit to the beneficiary.



Murabahah is a “cost-plus profit” sale contract. Under this concept, the Bank purchases the Good at cost and sell to Customer at cost-plus profit on deferred payment terms.

Banker’s Guarantee and Shipping Guarantee


Kafalah is a contract of guarantee, of which one party guarantees the fulfillment of a claim or performance of an obligation which is due to another party, in a case of default.

Collection Bills


Refers to the service provided by the Bank with an imposed fee.