Page 6 - Agib Bank Limited Annual Report 2021
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Ijarah/leasing - In this financing mode, the bank customer’s specification and to be delivered on
agrees to lease a customer an asset specified a specific future date at a determined Selling
by the price.
customer for an agreed period against specified
installments of lease rental. Quad Hassan (Benevolent Loan) - Is a non-
Salam – This mode of financing is used interest bearing loan intended to allow the
specifically to finance the agricultural sector. borrower to use the loaned fund for a period of
This is where the seller undertakes to supply time with the understanding that the same
specific goods to the bank at a future date in amount of the loan fund would be repaid at the
exchange of an advanced price paid by the end of the period.
bank to the customer.
Sukuk Al Salam - This is a short-term Islamic
Istisna – This is where the bank agrees to security, which is the conventional equivalent of
finance the manufacture or production of a Treasury Bills. It is used to mop up/control
product and the excess liquidity in the system. It is a short term
payment is made upon completion and delivery investment usually 3,6, and 12 months. It is a
of the item in question. It is a mode of financing transaction whereby two parties agree to carry
used to sell a non-existing asset which is to be out the sale and purchase of an underlying
manufactured or built according to the asset at a future date, and prepaid price.
Agib Bank Annual Report 2021 www.agib.gm 6 Annual Report and IFRS Financial Statements
