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International
Leasing:
Despite the
development of many innovative financing structures, Ijara – the
Islamic alternative to lease financing, continues as one of the most
popular financing instruments in the Islamic banking industry. KFH
commands a dominant position in the domestic leasing market, and has
been equally successful in cementing a strong brand franchise in
international Ijara financing market.
The Bank
has been involved in a number of international big-ticket leases in
the past, and the asset types that it financed varied from
manufacturing plants, aircrafts to ships. The Bank’s Ijara financing
activities involve operating leases as well as finance leases (Ijara
Wa’Iqtina), wherein the lessee will have an option to buy the asset at
the end of the lease term. Some of these international Ijara financing
activities are listed below:
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Saad
Medical Center (SMC): |
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In a bid to further diversify its portfolio
exposure and to capitalize on the opportunities of the medical sector,
KFH entered into a ‘sale and lease-back’ arrangement with SMC of Saudi
Arabia, to finance its medical equipment amounting to US$ 20 million.
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Guthrie
MDF Sdn Bhd |
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KFH together with Citibank of Malaysia arranged a US$
30 million leasing facility for Guthrie MDF Sdn Bhd – a conglomerate
company in Malaysia, in order to finance a range of its production
equipment. |
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