‘There’s strong appetite in the market for Islamic trade finance products amongst South African businesses,’ says a CEO.
The FNB Islamic trade finance offering is modelled on the Murabaha arrangement which entails the bank entering into an agreement to purchase and assume legal possession of items being imported and selling them to the customer upon delivery. As part of the agreement, the customer is required to facilitate logistics relating to the purchasing and receipt of goods from the supplier or exporter.
FNB Islamic Banking CEO Amman Muhammad said: “The launch of a trade finance offering cements our commercial Islamic banking value proposition and serves as a major milestone in our continuous journey to create a holistic Islamic financial services platform that caters for our customers’ specific Shari’ah compliant banking requirements.