Tim Nicolle

Bangladeshi exporters have been held back over the years by their reliance on the letter of credit.

First Security Islami Bank Limited has announced a new export finance product “Tasdir” that works without LC. Tasdir is powered by PrimaDollar.

Using Tasdir, exporters can trade on sale contract with deferred payment – and without LC, and without down-payment.

Tasdir is available over the counters of First Security Islami Bankand overturns decades of custom and practice.

Tasdir ushers in a new era for the Bangladesh garment industry.

Tasdir: how does it work?

Tasdir is available at AD Branches of First Security Islami Bank Limited (the “Bank”). Local exporters (large and small) can now offer credit to their international buyers.

  • Open an account with the Bank.
  • Get your buyer approved by the Bank and get a credit limit.
  • Agree the purchase order and deferred payment term with your buyer.
  • The Bank will give you back-to-back and packing credits (and other pre-shipment finance) in the usual way, but no letter of credit from the buyer is required.
  • Make the goods, submit your shipping documents, and the Bank will credit your account at sight without collateral.
  • The Bank takes the risk of non-payment later if the Buyer defaults.

Tasdir is a revolutionary product for Bangladesh. No more LC, no more down-payment. Exporters can ship now, and the buyer can pay later. No additional collateral is needed.

Tasdir results from the integration of the Bank’s standard pre-shipment services with PrimaDollar’s post-shipment services. By using PrimaDollar, the Bank acquires global buyer coverage and a fast turnaround time.

How do I get Tasdir?

Open an account with the Bank.

You can call this local number 01785-089353 for assistance if you need.

Why is this important?

Bangladesh has been a difficult place for international buyers. One of the many problems has been a lack of flexibility over financial terms for export – driven by a natural caution and tough local regulations. As buyers generally know, exporters in Bangladesh typically require either a letter of credit or payment before shipment – and exporters can be surprisingly rigid on these terms.

Tasdir changes this. When an exporters uses Tasdir, buyers can ask for deferred payment on open account and the exporter can say “yes”.

First Security Islami Bank Limited is a well-known and reputable bank – with good reach and a national presence across Bangladesh. Exporters can access Tasdir easily.

Tasdir is a low cost and simple way for exporters to work without LC and without down-payment.

  • For buyers, this means that they can place their orders simply, and without the hassle and cost of arranging a letter of credit alongside. Deferred payment terms are naturally available. The buyer has no charges or costs, and gets exactly what he wants. He can also negotiate terms to get positive cash flow and sell the goods before he has to pay for them.
  • For exporters, they can get bigger orders and better margins. Making it easier for buyers to place orders means that more orders will come. Bigger orders improve the economics of production. Saving buyers the cost of the LC and freeing up their banking lines means that unit prices can be raised.

Where is the catch?

There are only two things for the exporter to worry about:

  • Is the buyer a sufficiently good credit?
  • What does it cost?


Not all buyers will be acceptable for Tasdir, but most buyers are.

This part of Tasdir is delivered by PrimaDollar. There are no particular geographical restrictions, but the buyer credit must support the purchase order, and the buyer must be happy to verify the order before a trade is executed.


Nothing is for free, and Tasdir does have a cost, but it is surprisingly low. Tasdir is supported by low cost finance from the City of London.

PrimaDollar estimates that the net saving on US$100,000 of export from Bangladesh can be US$1,000 compared to the legacy system of LC – and that saving is per trade.

What have the experts said about Tasdir?

The launch event for Tasdir took place in Dhaka on March 20th. It will be covered in detail in a later post. But the speakers and supporters at the event included:

  • Chief Guest: Mr. Ahmed Jamal, Deputy Governor of Bangladesh Bank (the central bank)
  • Professor Prashanta Kumar Banerjee, Director of Bangladesh Institute of Bank Management (BIBM) and long-term advocate for the introduction of solutions like Tasdir to support open account.
  • Mr. Md. Fazlul Haque, Former President of BKMEA.
  • Mr. Anwar Shahid, Vice President, Bangladesh Garment Buying House Association
  • Board members of First Security Islami Bank, including
    • Mr. Syed Waseque Md Ali, Managing Director
    • Mr. Syed Habib Hasnat, Additional Managing Director
    • Mr. Md. Mustafa Khair, Deputy Managing Director
    • Mr. Md. Abdul Aziz, Deputy Managing Director
  • Naser Bukhtear, former MD of Agrani Bank and non-executive Chairman of PrimaDollar in Bangladesh.
  • Tim Nicolle, CEO of PrimaDollar Group.

Without attributing comments to any specific individual above, the consensus of the speakers was:

LCs are a problem

Tasdir allows exporters to work without LC. This solves a big issue that has significantly held back Bangladeshi exporters.

This is a problem worth fixing

If buyers can start trading in Bangladesh easily without LC, this will lead to bigger orders, new buyers will come, and this will drive exports volumes towards the ambitious growth targets to which Bangladesh aspires.

Tasdir will be big

Tasdir will attract a lot of interest. If it is priced correctly, the chances of significant volumes are high.

Open account is the future

Working on sale contract with deferred payment is the future; the market needs to move away from LCs.

Smart move by First Security

Projects to look at this problem were initiated as long ago as 2005. First Security Islami Bank should be soundly praised as the innovators and developers of Tasdir.

Tasdir will be copied

Local banks need to help exporters to work without LCs, and Tasdir should and will be copied. But this is a good thing. First Security Islami Bank is leading the way – but others will see and develop similar offerings. Bangladesh export volumes will grow and exporters will prosper.

Find out more

For more information on Tasdir, click directly here.

Alternatively, if you are in Bangladesh, just type “tasdir” into google – and you will find the link that you need.

Dhaka March 20th 2018

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