NBK launches ninth Ijara Fund
Kuwait, February 12, 2008
National Bank of Kuwait has launched the ninth edition of its Ijara series - Islamic Ijara Fund IX.
The launch of the fund, which is one of the most popular Islamic investments, will offer private banking clients an investment product that generates monthly reliable income similar to the previously launched eight Ijara funds which were extremely successful in terms of both returns and demand by investors, the bank said in a statement.
This offering will continue to boost NBK’s status as a leading financial institution that offers Islamic investment solutions in the local and regional markets.
NBK Capital Chief Executive Officer Salah Al Fulaij said the fund was created to grant NBK Private Banking clients the opportunity to invest in a diversified portfolio of in a diversified portfolio of leasing contracts that were structured according to the principles of Islamic Shariah.
These contracts involve various types of equipment including manufacturing, IT hardware, construction materials, telecommunication equipment, networking equipment, material handling and other types of equipment.
Al Fulaij added the fund is an investment vehicle designed to deliver monthly income generated from the leasing returns after a three-month murabaha period.
Returns following the initial rate will increase or decrease annually by 30 per cent of the change in the US Treasury Note, but will not be less than the initial rate which is expected to be 6.5 per cent annually distributed monthly. The fund’s term is 5 years with 2 one year extensions, the bank said.
The fund is entirely compliant with the laws of the Islamic Shariah as approved by the independent Shariah board for Islamic funds marketed by NBK in Kuwait comprised of Dr Sheikh Khalid Mathkor Al-Mathkor, Dr Sheikh Essa Zaki Shakra, and Dr Sheikh Abdul Aziz Khalifa Al-Qassar, said Al Fulaij.
The fund is denominated in US Dollars and the minimum investment in the fund is $175,000 with multiples of $10,000.
The offering period starts from February 12-March 6, 2008. Investors can subscribe only during this period as the fund will be closed afterwards, the bank said. – TradeArabia News Service