JEDDAH: Bank AlJazira (BAJ) signed an agreement with Zamil Industrial Investment Company (ZIIC) to purchase steel pre-constructed buildings and air conditioners produced by ZIIC in favor of Darfur Fund for Reconstruction and Development in Sudan (DFFCAD), with a value of SR75 million as part of a financing contract exceeding SR112 million. BAJ would thus sell such commodities to DFFCAD via Murabaha.
The agreement was signed by Abdulrahman Hourani, manager of export finance on behalf of BAJ and Nawaf Al-Zamil, VP, ZIIC, in the presence of Saeed Al-Muhanna, BAJ corporate regional manager of Eastern Region, and Mohammad Nabaq, chief financial officer of Zamil Group.
It is worth mentioning that BAJ has signed earlier two Murabaha based finance and sell agreements at SR75 million with DFFCAD to finance the fund so as to purchase steel pre-constructed buildings and air conditioners produced by ZIIC to be used in building houses in Dafour Region.
DFFCAD should repay the funding over two and half years as of the date of shipment. This deal has been guaranteed by Arab Investment and Export Credit Guarantee Corporation based in Kuwait (AIECG) so as BAJ would ensure repayment of funding upon maturity and against any commercial or political risks that may arise.
Ziad Tariq Aba Al-Khail, BAJ acting CEO, said signing of the agreement is considered one of the bank’s objectives to support the Saudi exports through using several export financing products, compliant with the Shariah rules, offered by BAJ.
Such offerings include selling commodities via Murabaha to an external importer whose product is used for the first time in the Kingdom.
This process entails participation of several parties, domestic and overseas, to execute. Such parties are ZIIC, the commodity producer, DFFCAD, the commodity purchaser, AIECG, the guarantor, and BAJ the financier.
