Islamic Banking Products

		Islamic banking has emerged as one of the most important trends in the financial world. Calyon has been offering a broad range of Islamic financial services and banking activities for many years and in 2004 set up a dedicated Global Islamic Banking team in Bahrain. Islamic banking has the same underlying purpose as conventional banking but it operates in accordance with the rules of Shariah. The basic principle of Islamic banking is the sharing of profit and loss and the prohibition of riba (interest). Amongst the common Islamic concepts used in Islamic banking are profit sharing (Mudaraba), safekeeping (Wadiah), joint venture (Musharaka), cost plus (Murabaha), and leasing (Ijara).

	March 27, 2008 -  Saudi Corporate Club Deal March 18, 2008 -  Calyon, appointed sole arranger and underwriter for a USD 350 million Sukuk (Islamic bond) for the Ministry of Finance of Bahrain February 20, 2008 -  Crédit Agricole Asset Management strengthens its position in the Middle East in association with Banque Saudi Fransi January 10, 2008 -  Calyon rewarded by Islamic Finance News

Our Islamic Banking Products Our Shariah Advisory Board

Islamic Financing Project Finance Calyon is one of the leading project finance banks with a staff of more than 100 professionals based in regional centres of expertise in Paris, London, Madrid, Milan, New York, Singapore, Hong Kong, Tokyo and Sydney. Coupled with the structuring expertise of our Global Islamic Banking department, Calyon offers exclusive Shariah compliant client solutions. Structured Finance Calyon offers structured Shariah complaint solutions in a variety of sectors including aviation, shipping, and structured commodity financing. The asset financing used for Aviation, Shipping, and capital goods can be structured under an Ijara (lease) or Murabaha (Cost plus sale of commodities) basis. Pre-delivery or construction financing can be effectively achieved through an Istisna contract. The Murabaha format can also be employed for Structured Commodity finance. Loan syndication Calyon is one of the leading players in the Islamic syndicated loan market, which has seen rapid growth in recent years. Our Global Islamic Banking Division, working with Loan Syndication, has established an enviable position as one of the leading banks in Islamic Lending. Calyon is well positioned to handle all Shariah related issues in respect of a debt issuance. Islamic loan syndication is generally structured around a concept called Tawarruq (reverse Murabahah). This occurs when an underlying asset (usually a commodity) is sold to the obligor on deferred payment terms. The payment profile and tenor can be structured to meet the obligor's financing needs. Trade Finance Calyon 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. Advisory Calyon's advisory capabilities will provide the optimum Shariah compliant financing solutions that best suit fundamental business requirements.

Islamic Capital Markets Calyon's network of 30 trading rooms around the world provides clients with an extensive range of trading and sales services for both standard and structured capital markets products. Calyon offers its Shariah knowledge and its conventional expertise to investors through a range of products. Our Islamic Capital Market team, whilst offering all of the traditional Islamic products is constantly striving to meet the demands of our global Islamic customer base. Some of the most common Islamic structures are described below. Investment Products - Structured Murabaha Deposit This Shariah compliant investment is capital protected deposit where the investor can get a return on a set of underlyings (Commodity, Equity, Index…) through a Murabaha transaction. It offers investors an enhanced return* compared to regular money market products. - Structured Options Using a Wa'ad (Promise), investors can have the opportunity to earn a return on a set of underlyings (Commodity, Equity, Index…). Hedging Products - Profit Rate Swap (Shariah compliant Interest Rate Swap) Through a set of Murabahas, investors can hedge investment rate risk by entering into a Profit Rate Swap. - FX Swap These Shariah Compliant Swaps using Murabahas in different currencies offer investors protection against currency rate fluctuation. - Cross Currency Swap This Islamic swap allows investors to mitigate the risk associated with any future fixed or floating rate payments through Murabahas between Calyon and the investor. *dependent upon product features

Top of the page

Dr. Abdul Sattar Abu Ghuddah

Top of the page