Export Financing

The Export Financing solution is designed to provide short-term financing for companies to capture international business opportunities and global growth. In collaboration with partner banks, Export Bahrain will offer export-financing towards approved export deals and contracts at competitive rates / profit. The financing covers the requirements of exporters and provide access to liquidity that cover operations costs of exporting.

Export Bahrain will provide financing of up to BHD 1 Million whilst subsidizing up to 70% of the annual nominal profit rate capped at 9.5%. Export Bahrain will also subsidize 50% of admin fee and 50% of guarantee (capped at BHD 125,000).*

*Subject to our Partner Bank’s approval.

Eligibility Criteria

A company with an active Bahraini Commercial Registration in the Kingdom of Bahrain.
Startup and growing companies with revenues below BHD 3,000,000.
To meet minimum standards of local production, goods manufactured or processed.

Bank Requirements

Terms & Conditions:

A valid commercial registration and all valid licenses required for conducting an Export Trade Business
A clean credit history with no record in CBB’s abuser list
Complying with the LMRA Bahrainization requirements and compliant with LMRA fees payment
Original signed agreements of export products
Enterprises with Shariah compliant activities

Documents:

Three years of audited financial statements
Two valid identification documents of owners
Copy of electricity bills (duration to be determined by the bank)
Bank statement (duration to be determined by the bank)
Article and/or Memorandum of Association
Company Profile
Board Resolution
A letter specifying the purpose of the amount of finance
Original Export Agreements to be approved by the Export Bahrain and the bank

*Approval is subject to Partner Banks Terms & Conditions.

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Frequently Asked Questions

What is the maximum amount of financing I can get from the bank and how is the amount determined?

Financing amounts may range between BHD 30,000 to BHD 1,000,000. The applicant will list and explain the export requirements within the bank’s application form along with a breakdown of the costs. Based on these requirements, the applicant will determine the total financing amount required and will be requesting this amount from the bank. The bank has the discretion to approve the same amount or less depending on their credit assessment.

For what purpose can I use the amount?

The type of credits that will be covered under this solution are export letter of credits, working capital to cover pre-operating/pre-shipment between the time of the receipt of an export order and the time fulfilling the export deal.

How long is the repayment tenor? Can I get a grace period?

Repayment tenors are determined based on the purpose of financing and may reach up to one year. The applicant may request for a grace period which is subject to the bank’s approval and varies on case to case basis.

How will I receive Export Bahrain’s subsidy?

The bank will reflect Export Bahrain’s subsidy in the profit rate whereas 70% of the profit amount will be paid by Export Bahrain to the bank. For example, if the bank chooses to charge a profit rate of 9.5%, the customer will be charged 2.85% while Export Bahrain will cover the remaining 6.65%.

Who will manage my account?

Applicants will be assigned a dedicated relationship manager from Export Bahrain who will coordinate the communication with the bank. The bank may however request for a physical meeting with the applicant.

How will I be supported with letters of credit?

Export Bahrain will support 50% of the 1% commission fee charged by the bank.