CORPORATE BANKING & TRADE FINANCE

 

Corporate Banking

FRANSABANK SYRIA manages all corporate relationships that have working capital and borrowing needs, as well as corporate customers with multiple product needs/usage. The Bank assists its corporate clients in fulfilling their needs and regularly providing financing solutions to their business demands helping them maintain a balanced and healthy growth process in Syria

Services:

Fransabank Syria’s services cover a wide range of economic sectors and are available for small, medium and large enterprises. They include:

    • Short term working capital financing:
      1. Overdrafts
      2. Discounting of commercial bills
      3. short term loans


  • Project Finance:
    1. Medium to long term loans
    2. Syndicated loans
  • Documentary credit and letters of guarantee


Trade Finance

Documentary Credit:

The documentary credit is an operation that FRANSABANK SYRIA by order and on behalf of its importing clients undertakes to pay to exporting parties in a determinable date(s), a certain amount against a presentation of the strictly complied documents with the terms and conditions of the documentary credit, the applicable provisions of Uniform Customs and Practice for Documentary Credits (UCP 600) and the International Standard Banking Practice (ISBP 681)

Types of Payment in Documentary Credits:

1.LC Available By Payment (at Sight): The issuing bank and/or confirming bank (if any) undertake to pay to the beneficiary at sight against complying presentation at nominated bank counter or at its counters
2. LC Available By Acceptance: The issuing bank and/or confirming bank (if any) undertake to accept a time draft drawn by beneficiary against complying presentation and pay at maturity.
3. LC Available By Deferred Payment: The issuing bank and/or confirming bank (if any) undertake to pay at a determined date in the future against complying presentation.
4. LC Available By Mixed Payment: The documentary credit can be available simultaneously by payment and by acceptance or by payment and by deferred payment.
5. LC Available By Negotiation: in this kind of LC the nominated bank can purchase a time draft maturity (drawn on bank different from the nominated bank) and/or a complying presentation of documents.


‘the nominated bank is purchasing the said time draft maturity and/or a complying presentation of documents after deducting its interests and commissions, then he send them to the issuing bank claiming for its total value on due date identified in the original LC terms and conditions’.

Letter of Guarantee

The letter of guarantee is an irrevocable obligation issued by the FRANSABANK-SYRIA by order of his client (the guaranteed) to pay a sum of money during a specific period of time in favor of a third party (the beneficiary) in the event of non-performance by the guaranteed the purpose that the guarantee has been issued for.

Types of Letter of Guarantee:

Bid Bond:

This type of guarantee is issued by order of our client (the tenderer) in connection with public sector tenders, as a security to continue with his bid and sign the final contract with beneficiary. Thus, this kind of guaranty can be considered as a fine for a tenderer and compensation to the beneficiary if such tenderer has been awarded for the subject tender and failed to sign the final contract and submit a performance bond. The value of this kind of guaranty is usually about 5% to 10% from bid amount.

Performance Bond:

This guarantee is issued by order of our client after being awarded by the beneficiary tender as a security for sufficient fulfillment of contractual obligation. The value of this kind of guaranty is usually about 10% from bid amount.

Advance Payment Guarantee:

This guarantee is issued by order of our client when the guaranteed needs to receive a down payment form the contract amount that has been already awarded to him by beneficiary. The beneficiary will only agree to such a down payment after receiving an advance payment guarantee, which ensures repayment of the said advance payment in the event of non-performance of guaranteed obligation. The value of this kind of guaranty is usually 100% from the advance payment amount.

Payment Guarantee:

This guarantee is issued by order of our client for securing of payment or installment due on the guaranteed in favor of beneficiary. The value of this kind of guaranty is usually 100% from payment amount or installment amount.

Other guarantees

  • Guarantee for granting a Credit Line: This guarantee is issued by order of our client in coverage for other banks to grant credit facilities to a specific client.
  • Customs Guarantees (clearance): This guarantee is issued by order of our client in favour of customs entities as a security of customs tariffs payment.

 

CLICK HERE to view The Standard Guide for Documentary Credit 

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