Realize your company’s vision with Muzn Islamic Banking’s long-term financing solutions.
When you require long-term financing for your business expansion along with investment opportunities or asset improvement, let Muzn Islamic Banking Term Financing fulfill all your business needs with Shari’a compliant solutions for large financing amounts and long tenures. Our dedicated team specializes in bespoke products that fit your business requirements and supports your business’ growth.
How Muzn Islamic Banking Term Finance works
To assist your company in managing liquidity for fixed asset procurements and project-based financing, we offer the ideal solution for the financing of new projects, including investment in new premises or machinery and the purchase of local and imported assets.
Ijara Muntahia Bittamleek and Sale and Lease Back
In Ijara Muntahia Bittamleek the leasable asset is bought by the Bank and leased to the customer for an agreed tenure and rental amount. After the completion of the lease period, the ownership is transferred to the customer. In Sale and Lease Back Transactions, the Bank buys an asset from a customer at an agreed price, and leases it back for an agreed tenure and rental amount.
Basic conditions of Ijara Muntahia Bittamleek and Sale and Lease Back facilities
- The subject matter of Ijara must have a valuable use. Assets that have no usufruct, or whose usufruct is not permissible by Shari’a cannot be leased.
- All risks and rewards emerging from the ownership of an asset shall continue to be borne by the lessor (Muzn) and the liabilities attributable to the use of the asset shall be borne by the lessee (customer).
- The lessee cannot use the leased asset for any purpose other than that specified in the lease agreement.
Ijara Mawsufah Fi Dhimmah
Ijara Mawsufah Fi Dhimmah is the Islamic Banking solution for financing assets that have not been constructed yet. In this case, Muzn may appoint the customer as an agent to manufacture or construct an asset after submitting complete specifications.
Basic conditions of Ijara Mawsufah Fi Dhimmah
- The customer and the Bank sign a Forward Ijara Contract to lease an asset yet to be constructed as per specifications mutually agreed. The Bank and contractor sign a construction Agreement to construct the Asset as per the customer’s request and requirements. Once construction is completed, assets are leased to the customer.
- The actual lease term commences only upon completion of the asset, with actual delivery of that asset to the customer. The Ijara rental also commences after the delivery of the asset, though the bank may collect advance rentals during the construction period.
- Ownership of the asset transfers to the customer upon completion of the lease period.