Documentary Letters of Credit (L/Cs)

Cham Bank offers premier services in both Outward Letters of Credit (Import L/Cs) and Inward Letters of Credit (Export L/Cs) of all types. The Bank provides issuance services for Sight L/Cs, Deferred Payment L/Cs, Back-to-Back L/Cs, Transferable L/Cs, Revolving L/Cs, and Advance Payment (Red Clause) L/Cs, among others, alongside Standby Letters of Credit (Standby L/Cs), in strict compliance with applicable regulatory frameworks.

Trade Finance via Letters of Credit

Among the core international trade solutions offered by Cham Bank is importer financing under documentary letters of credit. This structured trade finance service is executed through the Murabaha to the Purchase Orderer (Deferred Murabaha) structure; whereby the Bank purchases and takes legal possession of the underlying commodities/goods, subsequently reselling them to the client (the importer) on a deferred payment basis. The Murabaha installments are then amortized and collected from the importer over an agreed tenor, providing the client with the necessary window to commercialize the goods. This specialized banking facility is meticulously designed by Cham Bank to optimize and streamline international trade activities for corporate clients.