NBK launches second KD Ijara fund

SUCCESSFUL LAUNCH: New Ijara fund from National Bank of Kuwait reflects success of predecessor. (Getty Images)

National Bank of Kuwait (NBK) announced on Saturday the launch of its Islamic KD Ijara Fund II, which will offer investors the equivalent of 6.25 percent p.a. throughout the fund's term.

The Kuwaiti dinar denominated fund comes with a minimum investment of KD30,000 and will run for five years with two possible one-year extensions. The offer period will end on September 15.

In a statement, NBK said the fund’s launch was due to the ''overwhelming success'' of the Islamic KD Ijara Fund I, which was launched in June and fully subscribed within three days.

NBK Capital's Managing Director of Asset Management, Nabil Maroof, said: "The fund was created to grant NBK's private banking clients the opportunity to invest in a diversified portfolio of leasing contracts that are structured according to the principles of Islamic Sharia."

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

The fund is entirely compliant with the laws of Islamic Sharia as approved by the independent Sharia board for Islamic funds marketed by NBK in Kuwait.

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