Islamic Treasury Services

Features

  • ​​​Bespoke structured solutions Shari'a derived for individual clients and counterparties; these may involve Shari'a compliant stocks and indices.
  • Commodity Murabaha investment services in all major currencies. Bank ABC Islamic, on behalf of its clients, purchases goods from third parties and on-sells the same goods on deferred payment terms. The Murabaha profit to the client is agreed when purchasing the goods and is paid out to the client as part of the commodity sales price at the maturity of the Murabaha.
  • Providing reverse Murabaha facilities to provide liquidity during the life of a Murabaha transaction.
  • Investment in shares of ABC Clearing Company for shorter maturity placements. This vehicle takes credit balances of client clearing accounts on a daily basis and purchases blocks of participation shares in the company. The shares are valued on a daily basis by reference to the Net Asset Value (NAV). If the customer's shares in the company fall in value, then Bank ABC - as a third party - irrevocably and unconditionally guarantees that on redemption of the shares, the customer will receive an amount equal to the price paid for the shares; thereby ensuring that the customer is not prejudiced by the fall in the value of the company's shares.
  • Sharia compliant hedging solutions to manage currency risk, profit rate risk and commodity price risk.