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Corporate Banking
Tawarouq


Tawarouq Commodities
Product Description:

Under this type of contract, the Bank purchases commodities/metal from Broker in the international market on spot basis, then the Bank sells the commodities/metal to the customer on a deferred prices. The customer then appoints the Bank as an agent to sell the commodity on their behalf in the international market.

Features & Benefits:
  • Tawarouq sale price shall remain the same throughout the period of the contract.
  • Repayment terms may be Monthly/Quarterly/Semi-annually or Bullet payment
  • To cover the short terms company’s working capital needs.
Requirements:
  • Audited financial statements for the last three financial years along with the cash flow statements for these three years
  • New evaluation of the collateral, if any.
  • Legal documents of the customer.
  • Official facility request
Cost of Financing

Rate: fixed rate (CBK discount rate + %).

Terms & Conditions:
  • The subject must present a recent evaluations of the collaterals and the same to be evaluated on agreed periodical basis, if any.
  • The collateral should be insured by Sharia’ah compliant insurance policy, if any.
  • Granting the facilities are subject to internal assessment and approvals.
  • The Bank may reconsider its margin of profits in respect of any funding transaction, provided that, the Bank shall inform the customer with the new profit margins.
  • The customer shall disclose to the Bank all parties which are considered legally or financially related to the customer pursuant to the definition specified in the Central Bank’s directives in respect of maximum limits of credit.
Q & A:
  • Q: What is the maximum facility amount under Tawarouq Commodities product?
  • A: Subject to bank assessment review.
  • Q: Can Tawarouq Commodities product support medium or long term finance?
  • A: Yes, the Tawarouq Commodities product is flexible in term of tenor and financing period depending on the financing requirement and the Bank assessment.

Tawarouq Secured by Acceptance Bills
Product Description:

Under this type of contract, the Bank purchases the commodities from Broker in the commodity/metal international market on spot basis. The Bank then sells the commodities to the customer on deferred price. The Bank is then appointed by the Customer as an agent to sell the commodity on their behalf to the Broker . Any spot value received for the commodity/metal will be paid to the customer. The said Tawarouq transaction is extend against accepted commercial bills.

Features & Benefits:
  • Tawarouq sale price shall remain the same throughout the period of the contract.
  • Repayment shall be on the maturity of the acceptance bill.
  • To cover the short terms company’s working capital needs.
Requirements:
  • Audited financial statements for the last three financial years along with the cash flow statements for these three years
  • New evaluation of the collateral, if any.
  • Legal documents of the customer.
  • Official facility request
Cost of Financing

Rate: fixed rate (CBK discount rate + %).

Terms & Conditions:
  • The subject must present a recent evaluations of the collaterals and the same to be evaluated on agreed periodical basis, if any.
  • The collateral should be insured by Sharia’ah compliant insurance policy, if any.
  • Granting the facilities are subject to internal assessment and approvals.
  • The Bank may reconsider its margin of profits in respect of any funding transaction, provided that, the Bank shall inform the customer with the new profit margins.
  • The customer shall disclose to the Bank all parties which are considered legally or financially related to the customer pursuant to the definition specified in the Central Bank’s directives in respect of maximum limits of credit.
Q & A:
  • Q: What is the maximum facility amount under Tawarouq Secured by Acceptance Bills product?
  • A: Subject to bank assessment review
  • Q: Can Tawarouq Secured by Acceptance Bills product support medium or long term finance?
  • A: the product is tailored to support short term working capital financing.

Tawarouq Working Capital (TWC)
Product Description:

The Bank under this contract will deposit the full financing amount generated from Tawarouq Commodities transaction in the customer’s WIDA account for the company needs. All credit remaining in the account at the end of the day will be invested at a profit rate decided by the Bank as a Wakala Investment.

Features & Benefits:
  • To cover the short terms company’s working capital needs.
  • Tawarouq sale price shall remain the same throughout the period of the contract.
Requirements:
  • Audited financial statements for the last three financial years along with the cash flow statements for these three years
  • New evaluation of the collateral, if any.
  • Legal documents of the customer.
  • Official facility request
Cost of Financing

Rate: fixed rate (CBK discount rate + %).

Terms & Conditions:
  • Wakala profit calculation shall be on average daily balance basis and shall be credited on bank quarter ends.
  • The subject must present a recent evaluations of the collaterals and the same to be evaluated on agreed periodical basis, if any.
  • The collateral should be insured by Sharia’ah compliant insurance policy, if any.
  • Granting the facilities are subject to internal assessment and approvals.
  • The Bank may reconsider its margin of profits in respect of any funding transaction, provided that, the Bank shall inform the customer with the new profit margins.
  • The customer shall disclose to the Bank all parties which are considered legally or financially related to the customer pursuant to the definition specified in the Central Bank’s directives in respect of maximum limits of credit.
Q & A:
  • Q: What is the maximum facility amount under TWC product?
  • A: Subject to bank assessment review.
  • Q: Can TWC product support medium or long term finance?
  • A: TWC product is tailored to support short term working capital financing.