Whatever industry

Report
Islamic Financial Intelligence Summit 2013
Finance for Industry
Badlisyah Abdul Ghani
Chief Executive Officer
CIMB Islamic
11 November 2013
What type of investments are Islamic Financing
good for in any industry?
A question of Credit, Viability and Bankability
What industry and who is eligible for Islamic
Financing?
Whatever industry so long as undertaking permitted activities
Anyone and everyone!
…taking into account credit worthiness, viability and bankability
2
Some of the financing needs of selected industries…
Oil & Gas Sector
Exploration expenses
Funds to develop deposits
Downstream modernisation
Commercial and Residential
Property Sector
Project costs (including land
acquisition and build costs)
Transportation sector, including aviation and
shipping
New aircraft purchases
(including to refleet with more efficient aircraft, as
fuel represents a third of operating costs for most
airlines)
Financing of second hand fleet
Growth of leased aircraft
Construction of vessels
Long term property finance
Acquisition of vessels
Short term development finance
Leasing of vessels
Bridging facilities
Energy Sector
Pharmaceuticals Sector
Research & Development
Power plant construction and
acquisitions
Manufacturing facilities
Energy infrastructure
Equipment acquisition
Renewable/alternative
energy projects
M&A
New technology and automation
3
Each industry participants are run by people with
different background looking for different things in
their financial dealing…
4
Stakeholder’s expectation for Islamic Finance
influences how it serves any industry needs…
Stakeholders’ Expectations
Customers
Good,
competitive
products
No fraud and
misrepresentations
Real Shariah
compliance of
their choice
Wealth
Creation
Shareholders
Maximize
profitability
Social
responsibilities
Governments/Regulators
Protect Public
Interest,
nation building
Maximize
financial
inclusion
Protect
systemic
integrity
Proper
wealth
distribution
Employees
Good
employment
opportunities
Serious and
committed
employer in
doing the
business
Maqasid al shariah means in whatever we do we must serve the interests of all
human beings and to save them from harm. This influences how each stakeholder’s
expectations are articulated and propagated…
5
The reality of Islamic Financing and how it fulfills
industry needs…
The intermediation between the haves and have-nots in all customer segments fulfilling
their financial needs consistent with Shariah. It works in the same way as conventional
finance from a commercial perspective across all activities.
6
Some of the types of services Islamic Finance can offer
different industries…
TRADE FINANCE TRANSACTION BANKING PRODUCTS
Documentary Credit-i (DC-i)/Wakalah
Standby Documentary Credit-i (SDC-i)
Trust Receipt-i (TR-i)/Murabahah
TREASURY –
STRUCTURED PRODUCTS
All products (available in CIMBnet) are
based on Restricted Mudharabah
FX Solutions - Based on Wa'ad, Bai'alSarf and Commodity Murabahah
DEBT CAPITAL MARKET
FX-Spot
Sub Sukuk
FX-Forward
Exchangeable Trust Certificate
FX-Options
Islamic Asset Backed Securities (“ABS”) /
Islamic Mortgage Backed Securities (“MBS”)
Inward Bill Collection-i (IBC-i)/Wakalah
Foreign Bills of Exchange Purchased-i (FBEP-i)/
Bai' al-Dayn
Domestic Bills of Exchange Purchased-i (DBEP-i)/
Bai' al-Dayn
Accepted Bills (AB-i)/Murabahah & Bai' al-Dayn
Outward Bill Collection-i/Wakalah
FX-Structured Forward
Derivatives - Based on Wa'ad and
Commodity Murabahah
Islamic Profit Rate Swap
Inward Document Collection-i (IDC-i)/Wakalah
Cross Currency Profit Rate Swap
Bank Guarantee-i (BG-i)/Kafalah
Islamic Commodity Hedging
Shipping Guarantee-i (SG-i)/Kafalah
Islamic Commodity Options
Foreign Exchange Contract Line-i (FECL-i)
Islamic Commercial Paper (“CP”)
Islamic Medium Term Notes (“MTN”)
Plain Vanilla Sukuk & Trust Certificate
CORPORATE PRODUCTS / SHARIAH
BANKING
CONCEPTS
Term Financing
Floating /
Term Financing-i IMBT
Fixed Rate
Term Financing-i Commodity
Murabahah
Revolving Credit-i Commodity
Revolving
Murabahah
Cash Line-i Commodity
Overdraft
Murabahah
Islamic Commodity Hybrids
Products offered according to needs of client e.g. working capital,
importing of items, purchase of equipment, etc.
7
Contact Details
Please direct all queries to:
Badlisyah Abdul Ghani
Executive Director, Chief Executive Officer
CIMB Islamic Bank
[email protected]
Website : www.cimbislamic.com
Email
: [email protected]
Phone
: +60326191077
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