Crédit Agricole CIB, a recognised leader in the field of Islamic banking has been offering a broad range of Islamic financial services for many years.
 

Headquartered in Bahrain with a presence in Europe and Asia, the team works across all business lines to create financial instruments that allow Crédit Agricole CIB’s clients to invest and manage risk in today’s global financial markets using ShariaIslamic law as revealed in the Quran and through the example of Prophet Muhammad.
A Sharia compliant product meets the requirements of Islamic law.
Sharia Board is the committee of Islamic scholars available to an Islamic financial institution for guidance and supervision in the development of Sharia compliant products. compliant structures.

Crédit Agricole CIB’s Global Islamic Banking team has been involved in some of the most prominent projects in the Middle East that have earned the Bank an outstanding reputation in the market. By providing access to Islamic structures for conventional clients Crédit Agricole CIB facilitates the flow of capital between these two distinct financial sectors.

Crédit Agricole CIB offers Sharia compliant solutions in syndicated finance, project finance, structured finance, trade finance, commodity finance and export finance. Crédit Agricole CIB also offers structured Sharia compliant solutions in a variety of sectors including aviation, shipping and commodity financing.

The asset financing used for aviation, shipping, and capital goods can be structured as an Ijara A leasing agreement whereby the bank buys an item for a customer and then leases it back over a specific period
(lease) or MurabahaA form of credit which enables customers to make a purchase without having to take out an interest bearing loan. The bank buys an item and then sells it on to the customer on a deferred basis.
 (cost plus sale of commodities). Pre-delivery or construction financing can be effectively achieved through an IstisnaA contract of acquisition of goods by specification or order where
the price is paid progressively in accordance with the progress of a job.
 (progressive financing) contract. The Murabaha structure can also be employed for structured commodity finance.

Crédit Agricole CIB is one of the leading players in the Islamic syndicated loan market, which has experienced rapid growth in recent years. Crédit Agricole CIB is well positioned to handle all Sharia related issues in respect of a debt issuance. Islamic loan syndication is generally structured around a concept called TawarruqReversed murabaha (Murabaha).

Crédit Agricole CIB can provide Islamic products to facilitate trade, cash management, and can finance international and domestic market expansion, receivables and any other trade-related financing needs.

Across the region and throughout the world, Crédit Agricole CIB’s product range provides investment and hedging solutions for currency and profit/funding rates and for credit and equity markets.

Crédit Agricole CIB is at the forefront of product development and innovation, helping our clients to manage risk effectively and to optimise their financial performance.  We work closely with clients to deliver bespoke solutions that meet their specific needs in a broad range of regional currencies. 

Currency structures
Crédit Agricole CIB is an active participant in the global currency markets offering an extensive range of foreign exchange products. The Bank has developed a range of Islamic investment and risk management products including,Cross Currency SwapTransaction in which two market participants exchange the cash flows of two securities, for example one interest rate for another (rate swap) or once currency for another.s, currency outrights and currency options.

Profit rate structures
Crédit Agricole CIB provides borrowers with a wide range of hedging and cost reduction solutions including Profit Rate Swaps (Sharia compliant interest rate swaps) Through a set of Murabahas, investors can hedge investment rate risk by entering into a profit rate swap.

Crédit Agricole CIB offers Foreign Exchange SwapsThese Sharia Compliant Swaps using Murabahas in different currencies offer investors protection against currency rate fluctuation. , Cross Currency SwapsThis Islamic swap allows investors to mitigate the risk associated with any future fixed or floating rate payments through Murabahas between Crédit Agricole CIB and the investor. , FX Wa'adSharia compliant foreign exchange option. Through use of a Wa'ad (unilateral promise) clients secure the right to exchange currencies with the bank at an agreed rate on an agreed date in the future. Client pays a fee to the bank to secure the promise. This product is for hedging or cost reduction purposes only and not for speculation. , and Islamic FX OutrightSharia compliant foreign exchange outright. Through unilateral Wa'ads, Crédit Agricole CIB and the investor undertake to exchange two currencies on a future date at a pre-agreed rate..

Equity Structures
Our equity teams are involved in the trading, sale and arbitrage of equity index products. Working closely with the equity professionals in Crédit Agricole CIB, the Islamic banking team has created products that provide investments with similar risk and return profiles as the conventional equity products whilst meeting Sharia criteria.

 

Debt capital markets
Crédit Agricole CIB is a major player in the debt capital markets on a worldwide basis. For SukukIslamic Bond. Similar to an asset backed bond, Sukuk is a form of commercial paper that provides an investor with ownership in an underlying asset, and a return based on this ownership. The issuing entity needs to identify existing assets to sell to the Sukuk investors, via transference to an SPV.
The Sukuk investors then have a proportionate beneficial ownership in these assets. Investors typically take on the credit risk of the issuer rather than real asset risk on the assets owned by the SPV.
Sukuks can be listed and rated, though this is not necessary, depending on the target investor market. Sukuks are typically issued by corporate issuers, and some Financial Institutions, and also by Governments (Bahrain, Malaysia, Pakistan).
 (Islamic Bond) its dedicated team of originators located in the Gulf works with clients to provide the best solution to tap this important source of liquidity. On securitisation, Crédit Agricole CIB is already a market leader in the Gulf, and can tailor a specific solution on RMBS, CMBS or specialised assets.