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NBK’s Ijara fund fully subscribed on 1st day

Kuwait, June 14, 2010

National Bank of Kuwait (NBK) announced that its Islamic KD Ijara Fund IV was fully subscribed on the first day of its offering period with a fund size of KD33 million.

“The success of NBK’s Ijara fund series is due to investors’ demand for superior quality coupled with NBK’s widespread expertise and conservative approach which emphasizes the need for attractive returns and capital preservation,” said Nabil Maroof, NBK Capital’s managing director of Asset Management.

The fund was created to grant NBK clients the opportunity to invest in a diversified portfolio of leasing contracts that are structured according to the principles of Islamic Shariah. 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.

“Ijara transactions have shown that they typically outperform during economic recessions as companies substantially decrease their capital expenditure, preferring to lease their mission critical equipment instead. Lessees also tend to retain equipment for longer periods, offsetting the increased credit losses that result from a typical recession,” he added.

The Islamic KD Ijara Fund IV has a 5 year term with a possible 2 year extension and provides investors with the opportunity to enjoy steady monthly lease income on a Shariah compliant basis. The fund allows investors to reap the benefits of monthly income distributions at an expected annualised rate of 6 per cent in Kuwaiti Dinars.-TradeArabia News Service




Tags: investment | National Bank of Kuwait | finance | Islamic KD Ijara Fund |

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