Murabaha (Cost-Plus Financing)

• ITFC will purchase the commodities from the supplier and then sell them to the beneficiary with a deferred payment arrangement
• The difference between the purchase price and the sale price is a reasonable mark-up added to the purchase price

Instalment Sale

• ITFC will purchase the commodities on behalf of the beneficiary and transfer the ownership immediately upon delivery to the beneficiary, allowing the beneficiary to provide the same asset as security; the sale price will usually be paid in installments
• Under this mode of financing, the beneficiary is required to furnish a government, bank, or any other guarantee acceptable to the ITFC

Istisna'a (Contract of Exchange)

• A mode of trade financing for the promotion of trade in capital goods and enhancement of the production capacity
• It is a contract for manufacturing goods and other assets in the which the manufacturer (under mandate of ITFC, as financier) agrees to provide the buyer with goods identified by description after they have been manufactured in conformity with the description within a certain time and pre-determined agreed price
• This mode enables the ITFC to finance working capital, which will contribute to the enhancement of production capacity in member countries

Other Products

• ITFC is in the process of expanding their product offering to include leasing, Bay al-salam, Wakalah and Ja’ala in the future