NBK launches first edition of Islamic KD Ijara

National Bank of Kuwait (NBK), the largest financial institution in the Middle East, launched the first edition of its Islamic Ijara KD series, Islamic KD Ijara Fund I, offering 6.50 per cent return per annum.

The launch of the fund will offer investors monthly income throughout the fund's term. This offering comes due to the high demand of previous NBK Ijara products and their success in generating steady income to clients.

The fund will continue to boost NBK's status as a leading financial institution that offers Islamic investment solutions in markets.

NBK Capital's Managing Director of Asset Management, Nabil Maroof, said the fund was launched owing to the success of previous NBK Ijara US dollar funds due to their reliable monthly returns and relatively low risk.

The fund offers a diversified portfolio of leasing contracts that were structured according to Shariah.

These contracts involve the leasing of various types of mission critical equipment including manufacturing, information technology, hardware, construction materials, telecom equipment, networking equipment, material handling and other types of equipment to credit-worthy companies.

Denominated in Kuwaiti dinars, the minimum investment in the fund is KD30,000 with multiples of KD10,000. The fund's term is five years with two one-year extensions and is expected to make monthly distributions of 6.5 per cent per annum, Maroof said.

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