Kuwait Finance House (KFH) has reported a huge surge in the volume of bank guarantees and letter of credit (L/C) transactions it handled in the third quarter of 2015.

The volume of L/Cs increased by 23 per cent while bank guarantees increased by 79 per cent compared with the same quarter last year.

Product range

KFH puts the increases down to its use of high-end ICT systems, streamlined procedures and good staffing.

Principle conventional trade finance offerings include sight L/Cs for international transactions and acceptance L/Cs for the local market.

Islamic finance

Shariah-compliant products include Murabaha L/Cs, with KFH importing goods in its own name and at its own risk while the customer buys the goods from KFH, with the bank taking an agreed profit.

Guarantees issued by KFH cover several types of projects, tenders, performance, advance payments and contracts.

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