Istisna lending
Istisna is a Sharia mode of financing used to finance the construction of buildings, residential towers, villas and related products, as well as the manufacturing of aircrafts, ships, machines and equipment.
As a developer, if you own a plot of land and want to construct property on it and need financing for this purpose, lender will sign an Istisna agreement with you in relation to the construction of the building as per your specifications at the cost of the bank.
Ijarah Lending
This is a lease contract wherein the Bank leases property to the customer in return for a rental payment over a specified financing period. The Bank promises to transfer the title of the property to the customer at the end of the financing period, provided all payments have been made in accordance with the Sharia documention.
Ijara is an effective and practical financing tool that allows businesses to acquire equipment and machinery through leasing, instead of outright purchase, thus reducing the heavy burden of capital expenditure. The leasing period normally ranges from 3-7 years and the customer has the right to purchase the leased asset at the end of the Ijara period.
Sukuk
Sukuk is an Islamic instrument that provides the same commercial equivalent to a conventional bond, the difference being that it is structured in a sharia complian manner and represents proportionate undivided ownership in the underlying asset or investment.
The return on the Sukuk derives from the yield generated by the underlying asset or investment. We work with international leaders in Sukuk management, covering assets from aircraft to property.
