Trade finance relates to those banking requirements which relate to financing of payables and receivables of the Business Entities independent of and as a subset of the overall requirements of working capital/ project finance / Term loans etc. Trade finance includes such activities as issuing/ re-issuing/transferring/advising and confirming letters of credit, negotiations, Suppliers Credit, Buyers Credit, Factoring, Forfeiting, receivables financing with or without ECA support, supply chain and vendor finance, issuance of Financial as well as Performance Bank Guarantees, Issuance and Confirmation of Standby Letters of Credit, import and export collections, Secondary Market trade deals (Bank as well as Corporate exposures), Import Refinance, Silent confirmations etc. Companies involved with trade finance include importers and exporters, banks and financiers, insurers and export credit agencies, as well as other service providers.

Benefits of availing Trade Finance Facility from us:

• State Bank of India's expansive reach, stretching across continents and time zones translates into faster communication, quicker realization of proceeds etc.
• Effective and personalized service.
• Facility at competitive SOFR linked Interest rates.
• SBI Bahrain is in an extremely convenient time zone and location, which enables us to do real time transactions with our clients correspondents spread across the globe. In fact as we are around 2-1/2 hours behind IST, we are open even after Indian Banks close for the day.
• Minimum processing time.
• The facility is extended in USD and other major convertible currencies.

Major Trade Finance Products offered by us are as under:

• Suppliers Credit
• RA Financing (UPAS)
• Buyer’s Credit Against SBLC

Coordinates of Trade Finance Department:

Telephone Numbers: +973-17505166/17505158
Email Id: trade.wbbbah@statebank.com

We offer competitive rates for discounting of Bills under Letters of Credit for a Tenor up to 360 days. Bills of even longer period tenors could be considered subject to certain conditions.

How to avail this facility:

• The company may approach us through their bank or directly through email seeking quote which needs to be accepted.
• Company will be opening LC through their domestic banker (SBI or any other Bank).
• LC will be opened and sent by swift to SBI WBB Bahrain (SBINBHBM) which we will be advising to the beneficiary’s bank.
• LC will be available for negotiation with SBI WBB Bahrain.
• Beneficiary Bank will send documents to SBI WBB Bahrain which will be forwarded to LC issuing bank for their acceptance.
• LC issuing bank will send Bill Acceptance message by swift to us.
• Post-Acceptance, we will discount the LC as per agreed terms of finance and remit the funds to the beneficiary bank.
• We will advise our discounting charges to LC issuing bank for payment on maturity date.

In a typical Usance LC Discounting, the Negotiating Bank also takes care of the funding. Under RA Financing/Usance LC Payable at Sight(UPAS), we shall be nominated as Reimbursing Bank. While the Negotiating Bank takes the responsibility for examination of documents, the Reimbursing Bank provides funding to the Negotiating Bank.

How to avail this facility:

• The company may approach us through their bank or directly through email seeking quote which needs to be accepted.
• Company will be opening LC through their domestic banker (SBI or any other Bank).
• LC will be opened and sent by swift to SBI WBB Bahrain(SBINBHBM) (first advising and reimbursing bank) which we will be advising to the beneficiary’s bank (second advising bank and negotiating bank).
• Beneficiary bank will send documents directly to the LC issuing Bank for their acceptance.
• LC issuing bank will send acceptance of bills message to the beneficiary bank.
• Simultaneously, LC issuing bank will send copy of acceptance message and copy of documents by email to us. LC issuing bank will also send Reimbursement Authorisation (MT740) by swift to us along with MT799.
• Beneficiary bank will send MT 742 (Reimbursement Claim) to us by swift
• Upon receipt of MT 740 and MT 742 by swift, we will remit the funds as per terms of finance to the beneficiary bank.
• We will advise LC issuing bank all the details of financing charges by swift.
• On maturity, LC issuing bank will pay us the principal plus financing charges.

Short Term Finance, up to 360 days to Indian Importers to facilitate import of raw materials, machinery etc. against Standby Letter of Credit (SBLC) from Domestic Branches of SBI/Branches of First Class Banks in India. Facility of even longer period tenors could be considered subject to certain conditions.

How to avail this facility:

• Upon request from the company, our domestic branches will seek quote from us through BCQP Portal.
• Branches of First Class Banks in India will seek quotes for their customers through our email id trade.wbbbah@statebank.com
• We shall give a quote in the Portal/through email and upon acceptance of the quote by the company, we shall issue Offer Letter.
• A request letter from the company to sanction buyer’s credit should be sent through SBLC issuing Bank branch (for each transaction) along with accepted and signed offer letter.
• Our Branch will sanction buyers credit amount and advise through a sanction letter.
• The company has to accept and sign the sanction letter and a Loan Agreement on applicable stamp paper and SBLC issuing bank will send them by email to us.
• The domestic branch will issue SBLC and MT799 to our Branch
• Upon receipt of SBLC and MT799, we shall remit funds by MT202 to Nostro account of SBLC issuing Bank.
• On due date, the SBLC issuing Branch will remit funds to us and deal will be closed.
• The Customer shall approach SBLC issuing Bank for sending all the original documents to our branch viz. Request Letter, Signed and Accepted Offer Letter, Signed and Accepted Sanction Letter and Signed Loan Agreement by courier.
• Documentary Bills should have been handled by the SBLC issuing Bank