KUWAIT : National Bank of Kuwait announced today the launch of the ninth edition of its Islamic Ijara series, Islamic Ijara Fund IX, which is one of the most popular Islamic investments. The launch of the Fund will offer Private Banking clients an investment product that generates monthly reliable income similar to the previously launched eight Ijara funds which were extremely successful in terms of both returns and demand by investors. NBK Capital's Chief Executive Officer, Salah Al Fulaij, said that the Fund was created to grant NBK Private Banking clients the opportunity to invest in a diversified portfolio of leasing contracts that were structured according to the principles of Islamic Shariah.
These contracts involve various types of equipment including manufacturing, IT hardware, construction materials, telecommunication equipment, networking equipment, material handling and other types of equipment.
Al Fulaij added that the Fund is an investment vehicle designed to deliver monthly income generated from the leasing returns after a 3 month murabaha period.
Returns following the initial rate will increase or decrease annually by 30 percent of the change in the US Treasury Note, but will not be less than the initial rate which is expected to be 6.5 percent annually distributed monthly. The Fund's term is 5 years with 2 one year extensions.
The Fund is entirely compliant with the laws of the Islamic Shariah as approved by the independent Shariah board for Islamic funds marketed by NBK in Kuwait comprised of Sheikh Dr Khalid Mathkor Al-Mathkor, Sheikh Dr Essa Zaki Shakra, and Sheikh Dr Abdul Aziz Khalifa Al-Qassar, stated Al Fulaij.
The Fund is denominated in US Dollars and the minimum investment in the Fund is $175,000 with multiples of $10,000. The offering period starts on 12 February 2008 and ends on 6 March 2008.
Investors can subscribe only during this period as the Fund will be closed afterwards. For any inquiries, please contact your private banking manager.
© Arab Times 2008
