Islamic Finance

Trade Credit Takaful

Product Offerings : 

  • Bank Master TCI Takaful

  • Multi-Buyers Commodities Murabaha

  • Single Buyer Commodities Murabaha

  • Tawarruq Trade Credit Takaful  

  • Project & Capital Equipment Finance Takaful

Key Benefits : 

  • Full control on Takaful & Claims 

  • Mirroring with Lending Facility(ies)

  • Adequate Credit Cover limits  

  • Efficient Claims Management 

  • Risk Management Services

  • Portfolio Securitization opportunities

Our Value Added Services: 

  • Takaful Framework Structuring

  • Risk Management Guidelines & Best Practices from Takaful perspective

  • Transaction Risk Management Services

  • Client-Onboarding Services

  • Comprehensive Claims Management 

Islamic Banks are increasing considering Trade Credit Takaful to support and enhance trade finance transactions involving receivables and purchase financing. We offer a full spectrum of Islamic Trade Finance Credit Takaful for Commodities Murabaha and Tawarruq financing structures to Islamic Banks globally. We structure be-spoke Credit Takaful programs befitting specific requirements and compliance criteria for each respective banking clients. The Takaful Agreements are secured by S&P or A.M. Best A+ and AA rated insurers, reinsurers and ECA's (including ICIEC & DHAMAN) providing compliance comfort to our Islamic Banking clients.  

Bank Master Trade Credit Takaful:

This is a whole-portfolio blanket Trade Credit Takaful issued to Islamic Bank to insure all trade receivable Commodities Murabaha transactions on eligible credit-approved Debtors assigned by originating Obligor(s) to a bank (funded and non-funded). Qualified receivables are domestic, international and inter-factor arrangements. 

 

Multi-Buyers Commodities Murabaha (quasi Factoring) Trade Credit Takaful: 

This Takaful is used to cover a Single Obligor Trade Receivables Commodities Murabaha Financing Facility involving multiple debtors/buyers. The Takaful mirrors the respective client-specific financing arrangement and buyer-credit-limits are established earmarked to the respective originating Obligor under the bank's facility. The Buyer Credit Limits are generally non-cancellable and provides a sustainable receivables financing platform to the bank and optimizing the bank facility lines utilization by the Obligor.

 

Single Buyer Commodities Murabaha (quasi Factoring) Trade Credit Takaful: 

This Takaful is issued to cover a Specific Single Buyer​ or Key Account for trade receivables financing as reflected in bank's financing facility. The Takaful incorporates specifics of proposed trade transaction, underlying trade contract documentation and financing agreement for sake of abundant clarity and precision. The Takaful Credit Cover Limit is generally non-cancellable enabling stable trade financing structure. 

Tawarruq (Reverse Murabaha) Trade Credit Takaful :

This Takaful covers a Purchase or Vendor Financing Facility under a Tawarruq (Reverse Murabaha) structure. 

Project & Capital Equipment Finance Credit Takaful:

A comprehensive financial protection against commercial and country risks for projects finance is offered under this Takaful policy. Project Tenors upto 20 years, Capital Equipment Financing upto 7 years and indemnity protection upto 90% can be structured to insure diversified projects (Power, Infrastructure, Energy, IT, Telecommunications etc.) and capital equipments financing. 

Let's start a dialogue ! Write to us : TCI@prudence-UK.com ; TCI@prudence-USA.com

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