Pubali Bank Islamic Banking offers various export financing facilities. Some are for pre-shipment support and some are for post-shipment purposes. The pre-shipment financing facilities are as follows:

A) Bai’-Istisna’

It is an Advanced Purchase of Industrial Products for Pre-shipment financing to execute export order of the customer. The features of the facility are as under:

Purpose

Istisna'a is practiced in Manufacturing and Industrial purposes specially in RMG sector for mitigating pre-shipment expenses of the company. However, it can be practiced in agricultural and constructions sectors also.

Sector

Agriculture and Manufacturing Industry (Corporate/CMSME).

Tenure

Every individual deal has to be made for 180 days only and mark up be done for the same period.

Model

Bai`-Istisna, order is placed with specification for manufacturing an article with payment of determined price in advance.

Rate of Return

Concessional rate of mark-up profit is allowed to patronize export business.

B) Bai’-Salam

Bai’-Salam is a sale whereby the seller undertakes to supply some specific commodity (ies)/product(s) to the buyer at a future time in exchange of an advanced price fully paid on the spot. Here the price is paid instantly. But the delivery of the goods is deferred.

Purpose

To meet last moment cash crunch of the exporter clients before shipment. It is practiced in Manufacturing and Industrial sector specially in RMG sector for mitigating pre-shipment expenses of the company. However, it can be practiced in agricultural and constructions sectors also.

Sector

It is practiced in Manufacturing and Industrial sector (Corporate/CMSME) specially in RMG sector for mitigating pre-shipment expenses of the company. However, it can be practiced in agricultural and constructions sectors also.

C) Back to Back Letter of Credit

Purpose

The opening of one Letter of Credit backing on another Letter of Credit is known as Back to-Back Letter of Credit. This facility is given to the exporter to import raw materials for production of merchandise which is to be exported.

Eligibility

Valued constituent of the Branch/Window;

Not a defaulter of the Bank; nor is the guarantor of any defaulter;

Integrity, creditworthiness and reputation of the exporter is satisfactory;

Got valid ERC and IRC issued by the CCI&E.

Valid irrevocable unrestricted export L/C obtained from reputed Foreign Bank.

D) Murabaha- EDF

Objective

To provide financing facility to valued exporter clients of the Bank for smooth operations of export business.

Purpose

Bangladesh Bank facilitates the Export Development Fund (EDF) for input procurements of manufacturer-exporters.

Terms & Conditions

The terms & conditions of “Murabaha- EDF” are same as Murabaha mode of investment with compliance to circulars of EDF issued by BB from time to time.

Rate of Return

Mark-up profit of “Murabaha-EDF” is same as Murabaha, a portion of which is borne by Bangladesh Bank.

Shari`ah Compliance

To avail fund from Bangladesh Bank, we, the Bank, enter in to a deal to deal Restricted Mudarabah Agreement with Bangladesh Bank and receive Mudarabah fund; then it is invested to specific exporter client under the Murabaha mode of investment as per terms of “Restricted Mudarabah Agreement” to comply with Shari`ah principles.