NBK launches its second Islamic KD ijara fund
Kuwait City, September 5, 2009
National Bank of Kuwait has launched its 'Islamic KD Ijara Fund II', which will offer private banking clients an investment product that generates monthly income of 6.25 per cent throughout the fund’s term.
The fund is the eighteenth edition of the Islamic Ijara funds and the second from the bank's kuwaiti dinar series.
The fund was offered due to the over-whelming success of the 'Islamic KD Ijara Fund I', which was launched in June and was fully subscribed within three days, according to a company spokesperson.
“The fund was created to grant NBK private banking clients the opportunity to invest in a diversified portfolio of leasing contracts that are structured according to the principles of Islamic Shariah,” stated NBK Capital's managing director of Asset Management, Nabil Maroof.
These contracts involve the leasing of various types of mission critical equipment including manufacturing, IT hardware, construction materials, telecommunication equipment, networking equipment, material handling and other types of equipment to credit-worthy companies.
The fund is denominated in kuwaiti dinars; the minimum investment in the fund is KD30,000 with multiples of KD10,000. The fund’s term is 5 years with possible 2 one year extensions. The offering period will end on September 15.-TradeArabia News Service