The Saudi Fund for Development (SDF) has signed a cooperation agreement with Banque Saudi Fransi to support export letter of credit (L/C) transactions.

The agreement essentially provides export guarantees and is funded by US$150 million put up by the SDF.

Programme benefits

Under the agreement, the SDF will guarantee L/Cs received from foreign banks for the benefit of Saudi exporters.

The SDF will also provide pre- and post-shipment finance linked to the Saudi Export Programme.

Bank services

The SDF supported services will be provided through Banque Saudi Fransi's financial institution division, which already manages the bank's L/C and bank guarantee business.

The department also provides foreign exchange services and a range of trade finance products.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.