Convenient financing solutions for business in accordance with the principles and rules of the Sharia

Goods Murabaha (the document title is Corporate Murabaha) is a financing transaction based on purchase and sale of the goods, whereby the Bank purchases the goods, the subject of the Murabaha, and after possessing and owning of goods the Bank sells it to the Customer with an agreed markup either in percentage or in a lump sum and with a deferred payment condition.

The Customer receives the goods and makes payment on a convenient and agreed schedule of payments.

Absolute transparency: the cost price and margin of the Bank are clearly described in the Murabaha agreement.

How it works:

• The Customer selects the product and the supplier.
• The Customer applies to the Bank, providing all information about the goods the chosen supplier and submits a price quotation to the Bank from the supplier.
• The Bank purchases the Goods from the Supplier with immediate delivery. The ownership and risks associated with the goods are transferred to the Bank as the owner of the goods.
• The Bank and the Customer enter into a Sale and Purchase agreement (Goods/ Corporate Murabaha Agreement) for the selling of the goods to the Customer. The price of the goods consists of the Bank's cost price and profit margin.

• After signing the Murabaha agreement and delivery of the goods to the Customer, the goods will be owned by the Customer. The Customer pays the deferred Murabaha Sale Price payments to the Bank in installments according to the agreed payment schedule.

Terms and conditions according to the Sharia:

• The Customer cannot sell the goods to the Bank and also the Bank will not buy goods from the Customer and sell back the same to the Customer. The supplier must be a third party.
• Goods can not be gold, silver and currency.
• The goods must be purchased and owned by the Bank before the conclusion of the Murabaha agreement between the Bank and the Customer.
• As the Murabaha is a trust sale, the Bank is obliged to disclose to the Customer the cost price of goods, all associated expense related to the purchasing of goods and its markup.

Funding criteria:

• Any sector of the economy is financed, except for tobacco and alcohol production, gambling, production of weapons and ammunition, and other industries that do not comply with the principles and rules of the Sharia.
• The company must exist for at least three years. Stand-alone starting projects are not financed, except for projects involving state and quasi-state structures.
• The project owner must contribute at least 20% of the cost of the investment project.
• The company should not have arrears in servicing banks.
• Finance terms: up to seven (7) years, depending on the type of project and the specifics of the industry;
• Financed business should have been profitable within the latest three (3) years.​