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Corporate & Investment Banking

Corporate Banking

The corporate environment in Pakistan continues to evolve witnessing dynamic growth and innovation across various business sectors. With a strong focus on the business requirements driven by industry insight, technological innovation and highest commitment to service quality, ABPL’s Corporate Banking aims to provide Shariah compliant products and solutions for its corporate customers.

We believe in nurturing and developing long-term relationships with our customers by understanding their unique financing requirements and offering the most appropriate financing solution.

We offer a comprehensive suite of corporate solutions that meet the requirements of our customers. Our expertise includes:

  • Thorough understanding of our customer’s business needs
  • In-depth knowledge of varied industry sectors in Pakistan
  • Skill set in offering the right product as per the Shariah rulings

Guidelines.

In line with our vision, following fund based products help our customers achieve their short to long term business objectives:

  • Working Capital Finance
  • Medium to Long Term Financing
  • Project Financing
  • Islamic Export Refinance
  • Import and Export Financing
  • Trade Services
Al Baraka Bank (Pakistan) limited offers a wide range of Shariah compliant products and services to cater the different needs of your business. If you need to purchase raw material for your business or trade in your goods then following are the suitable products to meet your business demand.

Murabaha:

Murabaha is a sale of goods/commodities to a customer on a deferred price basis. In Murabaha, Al Baraka purchases a raw material/commodity on behalf of a customer and subsequently sells it to him on agreed cost and profit basis. Both cost and profit are disclosed and agreed with the customer at the time of sale of goods.

Tijarah:

Tijarah is a short term financing facility suitable to Exporters/ Corporates who need to generate liquidity by trading in their finished/ manufactured goods. In Tijarah, Bank purchases the finished/manufactured goods from customer and sells it to the market or exports it. In most cases, customer is made Bank’s agent to sale the goods in the market or export them.

Istisna:

Istisna is a specific type of sale transaction whereby a commodity is transacted before it is manufactured. It is the contract for manufacture goods as per particular specification. Istisna Finance is used to cater for the working capital requirements of customers involved in the manufacturing of goods. It is ideally suited for exporters and manufacturers who have export orders.

In order to meet Medium to Term Long Financing requirements or to expand the Business operations, following solutions are available to our valued customers:

Ijarah:

The concept of Ijarah is similar to Leasing in conventional Banking. Ijarah is a contract whereby the owner (Bank) of assets transfers its benefits (usufruct) to customer for an agreed period, at an agreed consideration. In Ijarah, the corpus of leased asset remains in the ownership of the lessor (Bank) and only its usufruct is transferred to the Lessee (Customer). During the entire term of theijarah, Bank being the owner of the assets retains the title of ownership and also,bears all risks and rewards pertaining to ownership. All the risks related to usage of the assets are borne by the lessee (customer). Ijarah can be availed for financing of plant, machinery, buildings and all the other fixed assets.

Diminishing Musharaka

Diminishing Musharaka is commonly used mode of financing the fixed assets. It is a type of Musharaka where Bank and Customer jointly purchase the asset in defined ratios of ownership. Bank’s ownership in the asset is divided into a number of units and the customer periodically purchases these units from the bank over a specified period. Over time, the customer purchases all units owned by the bank and becomes the sole owner of the asset.

Al Baraka Bank offers tailor made solutions for the complex projects through its range of Shariah compliant products and services. Through project financing, Al Baraka offers the solutions for infrastructure, industrial and other long term projects.

Islamic Export Refinance (this portion should be part of Import and Export Financing section)

Islamic Export Refinance is a unique Shariah compliant product provided to exporters to meet their special requirements in a completely Shariah compliant manner.

Project finance is the long-term financing of infrastructure and industrial projects based upon the projected cash flows of the project. Al Baraka Bank offers tailor made solutions for the complex projects through its range of Shariah compliant products and services.
Islamic Export Refinance is a unique Shariah compliant product provided to exporters to meet their special requirements in a completely Shariah compliant manner.
Al Baraka Bank offers tailor made Shariah compliant products and solutions to exporters and importers who require Islamic financing to cater the diverse and unique needs of their businesses. We have a wide range of products and services that not only fulfill the demands of importers and exporters but through the International Network of Al Baraka Banking Group, various services and facilities are available as per the requirements.
Based on various Islamic modes of finance, following is a complete range of products and services that are available for importers and exporters:
  • Letter of Guarantee (LG)
  • Export bills for collection
  • Export (Sight) bills purchase under Salam Arrangement
  • Export (Usance) bills purchase under Murabaha Arrangement
  • Letter of Credit (LC)

Investment Banking

Investment Banking addresses the increasingly diverse needs of our customers for advisory and structured finance solutions. The department is currently offering comprehensive and innovative financial solutions covering corporate finance, oil & gas exploration, real estate, trade management, capital and debt market products and international banking services.

The primary aim is to partner with our customers by suggesting practical, cost-effective tailor made solution to make the most of the business opportunities that arise.

Following range of advisory and structured finance solutions help our customers in pursuing their business strategies:

Advisory:

  • Raising Funds through Syndications
  • Corporate Re-organization
  • Infrastructure Development
  • Mergers & Acquisitions
  • Project Financing

Structuring:

  • Structured Finance
  • Securitization
  • IPO’s

Specialized Roles:

  • Private Equity
  • Trusteeship
  • Access to regional financial markets through Al Baraka’s global network that spreads across 15 countries