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Islamic Industrial Finance Portfolio

 

Industrial bank of Kuwait is pleased to launch a new Islamic portfolio for financing industrial projects. The bank will finance all types of industries approved by the Public Authority for industries through Islamic compliant products. The principal objective of the bank is to promote economic growth and development by extending term finance for investment in manufacturing sector of the economy of Kuwait to help private sector industrial development projects.

Through Islamic portfolio, the bank will provide a magnificent opportunity for those who wish to establish new industries or want to expand existing business activities in industrial sector in Kuwait. IBK will also extend its technical and managerial advice to its clients in planning and execution of their industrial projects.


 

Financing Features

Preparation of feasibility studies.

Profit margin of 3.5%.

Long-term financing/ Murabaha / Ijara and Istesna’a  up to 10 years or more including : Project implementation period. Grace period up to 2 years after commencement of production. Repayment period is normally not less than 5 years after the grace period. Flexible installments matching customer needs (semi annually, quarterly or monthly). Monitoring of project development by IBK during the financing period. Rescheduling of project  financing when needed.

 

Considered Projects

New Industrial projects.

Expansion / modernization of existing projects.

Industrial services in the oil and marine service sector.

 

Financing Limits

New projects : Maximum financing up to 65% of the total project cost.

Expansion projects : Financing up to 80% of the total project cost.

 

Based on the feasibility study prepared by the Bank.

 

What else should the client know

Pre-requisites for the acceptance of the financing application are to have the industrial license and allocation of industrial plot of land issued by the Public Authority for Industry (PAI).

Minimum financing amount of KD 100,000/-

First Mortgage of the industrial project in favor of the Bank, or any other acceptable collaterals.

    

Documents necessary for submitting Financing Application

Official letter enclosing the financing application, addressed to IBK’s Chairman & Managing Director.

Copy of the Industrial license or the approval letter for the project execution issued by Public Authority for Industry ( PAI ).

License to import machinery for project expansion (Public Authority for Industry).

Feasibility study of the project if available, or recent financial, technical and marketing details of the project.

Quotation for machinery and equipment; purchase orders, supply contracts or invoices in case of items already purchased.

Civil construction contracts or quotations.

Audited accounts in case of existing entities for the last 5 years.

Copy of the lease contract or the temporary administrative allocation for the land.

By – laws and articles of association of the company, including any amendments thereof.

Certificate of registration in the Commercial Register.

Copy of applicant’s Civil ID.

A recent certificate from the ministry of commerce and industry stating the client data.

 

Documents should be recent and valid at the time of evaluation of the Islamic  industrial financing request by the Bank.