Saudi Export Import Bank (Saudi Eximbank) is continuing to reach agreements designed make letters of credit (L/Cs) more available to Saudi exporters and their trading partners.

In the latest agreement, Saudi Eximbank will provide insurance cover for documentary L/C business written by Saudi British Bank (SABB).

Improved L/C availability

The agreement should allow SABB to accept more documentary L/Cs and facilitate new or improved relationships with international L/C issuing banks.

Better access to L/Cs is expected to increase opportunities for Saudi products to reach new and wider markets.

Saudi Eximbank and SAAB say they will also collaborate developing export capabilities and facilities for their clients.

Previous L/C support

Saudi Eximbank signed in September an agreement with the Islamic Corporation for the Insurance of Investment and Export Credit to launch an insurance product that aims to

improve Saudi banks' ability to consolidate L/Cs received from foreign banks in favour of Saudi exporters.

In October Saudi Eximbank said it would explore securitisation and L/C offerings to creditworthy Saudi exporters and Japanese importers with Sumitomo Mitsui Banking Corporation (DC World News, 26 October 2021)

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.