Letter of Credit

Secure your international and domestic trade transactions.

A Letter of Credit (LC) is a guarantee issued by IBA on behalf of a buyer, assuring the seller of payment once shipment and documentary conditions are met — structured to remain fully Shariah compliant.

Types of Letter of Credit

LC on Murabaha Basis

The Bank purchases the goods on behalf of the customer under the LC and resells them at cost plus an agreed profit margin.