An undertaking issued by the bank at the request of the customer (importer/applicant/buyer) where the bank promises to pay the beneficiary (exporter/seller/supplier) for goods/ services, provided that the beneficiary presents all required documents and that the documents meet all the terms and conditions set out therein.
Features & Benefits & Benefits
Secure payments for the good and services sold
Improve cash flow so as to better negotiate extended credit terms prior to payment of goods/services
Maintain control over goods until payment is received
Facilitate payments to be made easily and effectively
Support performance of contracts both locally and globally
Terms
Cash – 100% cash margin to be held in a lien account.
The cash margin should be held in the same currency in which the LC is issuedf
Partly cash-backed (minimum 50% cash deposit) plus a monthly cash build-up to be fully secured before release of the documents
Master LC from an acceptable issuing bank
Other acceptable security as per bank policy for LCs
Conversion into structured loan facilities (Post import financing)
Fees & Charges
As per tariff guide
Requirements
Pro-forma invoice
Import Declaration Form (If applicable)
Insurance
A guarantee by the bank that the bidder will execute the contract under the terms at which they bid in the event they win the tender.
Features & Benefits & Benefits
Unsecured up to KES 15,000,000.00 per customer.
Maximum Tenor of 180 days.
Easy to Fill application form
0.5% per quarter with a minimum of Kes.2,000.00
No Negotiation Fee
Terms
Collateral: Amounts above the unsecured limit to be secured by acceptable collateral as per bank policy
Fees & Charges
As per tariff guide
Requirements
Duly signed account opening forms and supporting KYC documents (for walk-in customers)
Bidding/Tender documents
Format of the guarantee
Any other document that the bank may deem necessary
A banking facility that guarantees the borrower will abide and perform as per the terms of a specific contract.
Features & Benefits
It assures payment to the employer in the event that the contractor fails to fulfill contract obligations, therefore helps to alleviate the cost of non-performance under the contract.
It is an assurance of payment to the beneficiary (the contracting party) in the event that the applicant (the contractor who has signed a contract with the beneficiary) fails to perform fully under the contract.
It is issued during the bidding process or award stage of a construction or procurement contract offering.
Terms
Collateral:
Cash: 100% cash margin to be held in a lien account. The cash margin should be held in the same currency in which the guarantee is issued
Other acceptable security as per bank policy. To be fully perfected before issuance of the guarantee
Fees & Charges
As per tariff guide
Requirements
Counter indemnity form
Letter of award
Format of the guarantee
A facility where a borrower asks for a sum of money to be paid in advance before commencement of works/service and in turn the employer requests for a guarantee before releasing the advance payment.
The employer is therefore guaranteed that the advanced funds will be repaid if default on work/service occurs.
Features & Benefits
Is an instrument issued on behalf of a customer to secure upfront payments to them by third parties for contracts awarded to, but not yet executed by, the contractor
It is an assurance that the contractor will use the proceeds to perform the contract.
It is issued after the awarding of the contract by the contractor’s bank in favour of the contracting party.
Terms
Collateral:
Cash – 100% cash margin to be held in a lien account. The cash margin should be held in the same currency in which the guarantee is issued
Other acceptable security as per bank policy. To be fully perfected before issuance of the guarantee
Fees & Charges
As per tariff guide
Requirements
Award letter
Security details
Application form duly filled and signed
For some contracts/works, a specified percentage of the contract amount is held for a specific period to ensure performance as per the terms and conditions of the contract is met. The bank therefore can issue retention bonds for the same period to the employer to unlock the retained funds.
Features & Benefits
Support a warranty to the purchasing/contracting party. An assurance of payment to the beneficiary in case of breach of contract mostly post contract execution.
Terms
Collateral:
Cash – 100% cash margin to be held in a lien account. The cash margin should be held in the same currency in which the guarantee is issued
Other acceptable security as per bank policy. To be fully perfected before issuance of the guarantee
Fees & Charges
As per tariff guide
Requirements
Executed contract documents
Format of the guarantee
Application form duly filled and signed
Custom bonds or guarantees are used to guarantee that a specified obligation will be fulfilled between customs (Kenya Revenue Authority, KRA) and an importer for any given import transaction.
Guarantee payment of import duties and tax.
Features & Benefits
VAT bonds issued to tax authorities for import/exports
Terms
Collateral:
Cash – 100% cash margin to be held in a lien account. The cash margin should be held in the same currency in which the guarantee is issued
Fees & Charges
As per tariff guide
Requirements
KRA supporting documents
Customs bond in the KRA format, duly executed by the customer
Application form duly filled and signed
Have you obtained purchase orders/letters to deliver goods and services or carry out contractual works? This is the product for you.
We provide funds to the borrower against confirmed orders or contracts to enable them perform contracts or meet the delivery of a specific order from the issuer.
Features & Benefits
Trade Loans are working capital solutions offered to bridge the gap between the period of making payment for materials and wages and the time of receipt of payment for goods and services supplied.
Terms
Maximum Amount
60% of the LPO/Contract amount
Collateral
90 days. However, a longer period maybe approved on a case by case basis depending on the terms and conditions of the LPO/Contract
Fees & Charges
As per tariff guide
Requirements
LPO and contract documents
Application form duly filled and signed
Short-term financing that allows the borrower obtain funds in advance from the bank against accepted bills of exchange or commercial invoices. The advance is based on the face value of the accepted bill of exchange or the commercial invoice drawn by the seller where the payment will be deferred.
Features & Benefits
Invoice discounting for confirmed invoices and deliveries.
The Bank offers invoice discounting facility.
Invoices must be from reputable organizations, blue chip & listed companies, Parastatals or Government.
Financing up to 80%
Pricing as follows;
Negotiation fee of 3%
Prevailing Interest Rate
Terms
Unsecured Limit
Where the buyer is on a pre-approved list of paymasters considered acceptable to the Bank, the unsecured limit shall be KES. 1,000,000.00
Fees & Charges
Over the counter (OTC) withdrawal fee of KES.100.00
Inward EFT KES.100.00
Outward cheque deposits at KES. 25.00 per cheque
Maximum Amount
70% of the invoice amount
Maximum Tenor
90 days
Fees & Charges
As per tariff guide
Requirements
Unpaid Invoices (Received and verified by the buyer)
Customer Application duly filled and signed
Short-term financing to facilitate performance under a sales contract and will often be predicated on the credit strength of the end buyer/ off-taker.
Features & Benefits
This is the type of funding provided to the seller to commence production or sourcing of goods.
The buyer may also be given funding to finance payment of deposit to the supplier.
Terms
Maximum Amount
70% of the invoice amount
Collateral
All amounts to be secured by acceptable collateral as per the bank policy
Fees & Charges
As per tariff guide
Requirements
Executed term sheet
Confirmed order (for first class customers) or payment guarantees/ letter of credit from the end buyer/off-taker
Customer application duly signed
Short-term financing to enable the borrower to meet their maturing/ payment obligations under import letters of credit, import documentary collections or open account.
Features & Benefits
This is a form of financing provided either to a seller if they have agreed on credit terms with the buyer, or to the buyer if it has granted credit terms to its customers or if it’s required to hold the stock for a period.
Terms
Collateral
All amounts to be secured by acceptable collateral as per the bank policy.
Fees & Charges
As per tariff guide
Requirements
Executed term sheet
Invoices and supporting documents (for first class customers) or payment guarantees / letter of credit from the end buyer
Customer application duly signed
A facility available to customers who are traders or manufacturers on the basis of goods or commodities held in trust as collateral for the loan.
Features & Benefits
This is a form of financing provided either to a seller if they have agreed on credit terms with the buyer, or to the buyer if it has granted credit terms to its customers or if it’s required to hold the stock for a period.
Terms
Collateral
All amounts to be secured by acceptable collateral as per the bank policy
Fees & Charges
Over the counter (OTC) withdrawal fee of KES.100.00
Inward EFT KES.100.00
Outward cheque deposits at KES. 25.00 per cheque
Maximum Amount
70% of the cost
Maximum Tenor
365 days
Requirements
Executed term sheet and supporting documents
Customer application duly signed