Funded Facilities
We offer Shariaa compliant facilities across varied industry sectors including trading, manufacturing, commercial real estate, contracting and so on. Our corporate banking unit is managed by a team of experienced and dedicated professionals who provide advisory services, project finance expertise and new product development tailored to match your financing needs with excellence in service delivery.
Murabaha*
Murabaha is a contract that involves the sale of an item by the bank to a customer (party who wants to place a purchase order) for a pre-agreed selling price which includes a pre-agreed profit mark up over its cost price, this having been specified in the customer’s promise to purchase. It typically involves deferred payment terms.
Ijarah*
Under this financing arrangement, the bank will have rights to the asset, and the borrower will pay periodic lease rentals to the bank. The bank and the borrower will agree to a method of calculating the rental rate, subject to the variable cost of funds of the bank. The leasing period normally ranges from three to eight years, with the lessee having the right to purchase the leased asset at the end of the Ijarah period.
Istisna’a*
Istisna’a is a sales contract of specified items to be manufactured or constructed with an obligation on the part of the manufacturer or builder (contractor) to deliver them to the customer upon completion.
Under this contract, NIB will agree to deliver a commodity or an asset at a pre-determined future time at an agreed price. Istisna is widely used for financing the construction of buildings, warehouses, showrooms, shopping malls etc.
Musharakah is a partnership in which NIB participates in financing new or existing projects and shares the capital and returns. Alternatively, the bank may contribute to the ownership of specified assets permanently or otherwise provided that the profit is shared in accordance with an agreement between NIB and the customer.
