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).
Features and Benefits
- The exporter has a bank commitment to pay against compliant documents, instead of running the importer’s commercial risk
- Product is used when the exporter is not very familiar with the importer or does not want to assume the political risk of the importer’s country. This product perfectly suits those exporters who need to manage their commercial and cross-border risks
- 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 honor the credit, assuming all terms and conditions have been complied with