PrimaDollar and First Security Islami Bank Limited (FSIBL) have agreed to cooperate in the provision of international trade finance services to export customers of FISBL. Historically, local banks in Bangladesh have found it difficult to offer discounting of open account receivables that are not backed by letters of credit. Based upon the cooperation with PrimaDollar, FSIBL will be able to start offering this service to its customers which has been structured to be compliant with the principles of the Shari’a.
This agreement is important for both PrimaDollar and FSIBL. Increasingly, innovation in financial services is being created by cooperation between established banks and new arrivals from the alternative finance (“fintech”) world. FSIBL and PrimaDollar are leading the way with this joint venture.
Discounting open account receivables is a service badly needed by local exporting factories whose international buyers increasingly want to work without letter of credit and with deferred payment. Delivery of a solution that complies with all the regulations requires the cooperation of banks and trade finance companies like PrimaDollar.
Mr. Syed Waseque Md. Ali, Managing Director of First Security Islami Bank Limited commented that “We are pleased to be signing this agreement today. FSIBL is taking the lead in the local market and our customers will benefit directly from the expanded range of trade finance services that we will be able to offer.”
Tim Nicolle, CEO of PrimaDollar, commented that “First Security Islami Bank will be a strong partner for us going forward as we continue to build our support for Bangaldeshi exporters. Exporters need access to credit facilities so that they can sell to international buyers without letter of credit and offer deferred payments. FSIBL will be able to offer this facility in it is branches, and not just for the largest buyers.”
PrimaDollar is a British-based global trade finance company. PrimaDollar is registered in the UK with the Financial Conduct Authority, the principal UK financial regulator. In Bangladesh, PrimaDollar operates under the permission of the Bangladesh Investment Development Authority.