Corporate & Investment 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
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
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 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 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.
This is a Shirkul-aqd based financing facility offered to the customers where the Bank participates in the operating activities of the customer and shares profit and loss as per the actual performance of the business. This product is also used as a viable financing solution for Service Industry.
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 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.
- 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 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 advisory, capital market products and international banking services in various and diverse range of sectors including oil & gas exploration and distribution, cement, real estate, power generation, electrical and power appliances, industrial gases and medical solutions and pharmaceuticals.
The primary aim is to partner with our customers by suggesting practical, cost-effective and structured solutions so that they can make the most of the business opportunities that arise and maximize their financial returns.
Following range of advisory and structured finance solutions help our customers in pursuing their business strategies and operations:
- Raising through Syndicated financing and Sukuk transactions
- Corporate Re-organization
- Infrastructure Development
- Mergers & Acquisitions
- Project Financing
- Structured Finance
- Private Equity
- Access to regional financial markets through Al Baraka’s global network that spreads across 15 countries