Imaan Trade Finance

Imaan Trade Finance allows importers get goods from manufacturers or distributors, following a similar process used in the conventional space, without paying interest. Similarly it enables exporters sell goods to off-takers in other places through a compliant structure using the Cost + (Murabaha) mode of financing.

Who is this for

Imaan Trade Finance is for importers and exporters of Fast Moving Consumer

Goods, Agriculture and Agro allied products, solid minerals and industrial raw

materials and all ethical items that are not in the Nigerian import or export prohibition

list.

What does it offer you:

  • Pricing will be in accordance with prevailing profit rates in addition to other acceptable fees in line with approved market rate and CBN tariffs.

  • Mark ups will be fixed and will not change due to defaults in payment.

 

What you need to apply:

  1. Must open and operate an Imaan Current Account

  2. Must have at least 3 years of stable operations in their current market, good track records and must have done importation or exportation at least once.

  3. Trade in non-perishable, fast moving consumer products or raw materials and finished commodities.

  4. Restricted to items which have a cash conversion cycle of a maximum of 180 days.

  5. 3 year financials (latest FY accounts)

  6. 12 months’ other banks’ statement (if less than 6-12 months with StanbicIBTC)

  7. Offer letter of all facilities enjoyed in other banks

  8. LPO or executed contracts for Confirmed Orders (If applicable)

  9. Must have done importation or exported at least once or as may be acceptable to the Bank

  10. Evidence of past importation and LCs

  11. All Risk Insurance (using Takaful) including Marine insurance to be put in place

  12. An Advance Payment of 20% of the Cost of the goods which will be used as first repayment immediately after disbursement.

  13. Domiciliation of daily sales into the Imaan Current account, on maturity the balance in the account must be sufficient to absorb the financing

     

Collateral Options

  • Legal Mortgage on a landed property (the Bank’s interest to be noted for at least 10%)

  • Other acceptable security –  shares (Shariah screened) with minimum coverage of 200%

  • Domiciliation of payment from acceptable companies (for confirmed orders – LPO Financing) - as a repayment source

  • Tripartite Warehousing Arrangement.

  • Marine Insurance with the Bank noted as first loss payee

  • All clients will sign a separate document in which they agree and undertake to pay 1% of default amount to a Non Permissible Income Account for disbursement to charity, maintained by the Bank’s Advisory Council of Experts (ACE).

     

Some dynamics for Import Finance:

  • Provision of contract documents from the offshore supplier/manufacturer.

  • Goods must be ethical such as agricultural commodities, minerals, raw or semi processed materials or finished products.

  • On meeting all conditions precedent to finance, the Bank will appoint a collateral Manager for the transaction.

  • The collateral manager will receive the commodities to confirm quantity and quality before issuing a warrant certificate to the Bank.

  • The Bank buys the FX, where available, and pays the supplier of the commodity to become the beneficial owner.

  • Bank receives shipping documents (endorses shipping document to the Importer)

  • Bank sells the commodity to the Importer at the agreed mark-up

  • Repayment of outstanding obligations in accordance to agreed structure.

     

Some dynamics for Export Finance: Naira Disbursement

  • Provision of an existing Imaan current account and the in addition to a valid contract document with the offshore buyer.

  • The Client meets all conditions precedent to financing and the Bank appoints a collateral Manager for the transaction.

  • Supplier of the ethical goods deposits same in the warehouse.

  • The collateral manager receives the commodities and confirms quality and quantity before issuing a warrant certificate which is then submitted to the Bank.

  • The Bank pays the supplier of the commodity and becomes the beneficial owner

  • The Banks sells the commodity to the exporter at the agreed mark-up
    • For Pre – shipment financing, the client signs deed of hypothecation for the goods to serve as additional collateral

  • Repayment is made by the client in accordance with agreed structure before release of products for pre-shipment financing and the outstanding amount is subsequently liquidated.

     

.When payment is not made prior to release of goods

  • In the event that payment is not made as in above sequence, Client must have registered NXP accompanied with GIT

  • Bank to authorise release of the warehoused commodities which will be transported to the designated terminal / warehouse for delivery to off taker.

  • Shipment is done under the supervision of the collateral manager

  • Payment is made by the offshore buyers into Client’s domiciliary account (export proceeds account) with Stanbic IBTC Bank as per the contract document.
    Upon receipt of the funds in Clients' domiciliary account, the proceeds will be sold to Stanbic IBTC Bank at the interbank market as per exchange control requirement and Naira applied to clean up the obligation.

For more information:

Please visit a Stanbic IBTC Bank branch or call us 0700 CALL STANBIC (0700 2255 7826242) or +234 01 270 9676 or email customercarenigeria@stanbicibtc.com 


Customer Care Lines

Nigeria
0700 2255 782 6242

International
+234 1 270 9676

Email

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