National Bank of Kuwait (NBK), the largest commercial bank in Kuwait, launched today its first Ijara (Islamic Leasing) Fund, offering investors a steady monthly income that complies with the Islamic Shariah, without taking excessive risk. The Fund is expected to provide investors with a yield of around six percent on an annual basis.
NBK Deputy CEO Issam Al-Sager stated that Al-Kawthar Ijara Fund’s main objective is to provide investors with reliable and attractive monthly returns. The fixed income Ijara fund invests selectively in Ijara transactions that satisfy the requirements of the Islamic Shariah. The Fund’s structure and operations will be reviewed annually by a Shariah Board.
Al-Sager emphasized the following features of the Fund: Regular and attractive returns by investing in Ijara transactions with credit-worthy US companies, mostly Fortune 1,000 companies that satisfy the requirements of Shariah; the equipment portfolio will also be diverse as to lessees and equipment types and making the Fund a low-risk investment vehicle.
“Owing to the complexity of the subject matter, it is virtually impossible for an individual investor to acquire an objective overview of the US leasing market as a whole. The most intelligent alternative for participating in this fast and growing industry is an Ijara fund,” said Al-Sager.
The offering period of the Fund is limited. It will commence February 10 and end on March 26, 2002. Subscription to the Fund is open to all nationalities and the minimum investment amount is $25,000.
National Bank of Kuwait (NBK) was founded in 1952 as the first indigenous bank and the first joint stock company in Kuwait and the Gulf. It is the largest financial institution in Kuwait with an effective market dominance in the commercial banking market. NBK‘s local and international network includes branches, subsidiaries and representative offices in London, New York, Paris, Geneva, Bahrain, Beirut, Singapore, Vietnam and Thailand, with other ambitious plans for regional expansion.
With capital resources in excess of 380 million Kuwaiti dinars ($1.3 billion), NBK is ranked amongst the top 300 banks in the world and the fourth amongst Arab banks. In 2001, NBK reported a record net profit of $342 million, with a return on average equity of 25.4 percent and total assets of $14.6 billion. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
