Azerbaijani bank expands range of Islamic financing instruments
Azerbaijan, Baku, Jan 21 / Trend N. Ismayilova /
In cooperation with the Islamic Corporation for Private Sector (ICD, Islamic Development Bank Group) since 2008, TuranBank has started using "Islamic financing" instrument Ijara (Leasing), the message said. According to the agreement made with ICD, this financing instrument is aimed at financing the transport sector. Under the terms of the instrument, project funding provided for 5 years including one year as a grace period.
According to the second "Wakala" agreement with ICD, is authorized as an agent to use financing tool of
"Murabaha" as well under different ownership rights with the above mentioned terms.
Within the framework of the funding lines of above mentioned international financial institutions TuranBank provides Islamic banking products "Murabaha (resale), two step Murabaha and" Ijara".
TuranBank was established in 1992. The bank has 25 shareholders, five of which are legal entities (21.8 percent) and 20 physical entities (78.2 percent).