Murabahah Pre-Shipment Export Financing

Unique Features

Murabaha pre-shipment export financing is a facility extended for the purchase of raw materials and/or exportable goods.

The selling price of the exportable item shall be within the acceptable range. It shall be confirmed by the National Bank of Ethiopia (NBE) or ECX (Ethiopian Commodity Exchange) or the concerned government organ.

Murabaha financing requires bank and exporter to sign at least two agreements separately, one for the purchase of goods to be exported and the other for appointing the exporter as the bank (that is agency agreement). Once these two agreements are signed, the exporter can negotiate and finalize all the terms and conditions with the importer/seller of goods on behalf of the bank.

Murabaha pre-shipment export financing against the sales contract can be one-time or revolving.

Please contact Coopbank Islamic to get more detailed information and advice