A Letter of guarantee is an undertaking by Al Rajhi Bank on behalf of its customer to pay a certain sum of money to a beneficiary in case of default by the applicant in meeting certain terms and conditions of an agreement and contract.
Al Rajhi Bank can remit trade documents representing the ownership of merchandise.
Al Rajhi Bank receives the exporter’s documents from the exporter’s overseas bank.
The importer’s bank irrevocably commits to payment provided that the exporter complies with the terms and specifications of the letter of credit.
An instrument issued by Al Rajhi Bank in favor of a beneficiary (exporter) on behalf of the applicant (importer).
Murabaha LC is a letter of credit issued by Al Rajhi Bank in favor of the beneficiary (exporter) on behalf of the applicant (importer).
Musharaka LC is a letter of credit issued by Al Rajhi Bank in favor of the beneficiary (exporter) on behalf of the customer-applicant (importer).