Loan and Credit Facilities Services

Loans and credit facilities are provided to Company’s clients directly or through participation in syndicated facilities.  The department also finances inter-Arab trade as well as trade between Arab countries and their non-Arab trade partners.

Financing facilities include the following services:

• Opening, advising, confirming and refinancing letters of credit
• Discounting commercial papers directly or through participation in syndicated facilities
• Issuance of guarantees including shipping guarantees.
• Financing of private and public sector exports.
• Pre-export financing.
• Purchase of forfaiting papers on fixed or floating interest rate basis

These facilities are granted to customers (corporate, financial institutions and government owned entities) to meet their financing needs as may be justified by prudent financial and economic considerations.

They are mainly provided to the following customer categories:

• Institutions in need of working capital to finance their activity.
• Arab and foreign contractors to help them meet the requirements of the projects they are undertaking in the Arab countries.
• Customers from public and private sectors in order to finance new projects or develop on-going ones in different economic sectors.
• Corporate clients to finance their business activities.
• Arranging syndication deals for financial institutions.

In view of the ever-growing role of inter-Arab trade in the Arab economy integration, TAIC took the initiative to join the Arab Trade Financing Program (ATFP) sponsored by the Arab Monetary Fund. The OBU is now recognized by the ATFP as a National Agency.