How does it work?

• The bank and the customer will contribute equal or unequal portion to the project and own them jointly which is known as Shirkatul Melk.
• The bank will then rent out its portion of the asset to the customer under Ijarah (lease) contract and the customer will pay monthly rent for that portion.
• Additionally, the customer will buy back the portion of the bank buy paying principal which will be included in the monthly payment.
• When customer makes the last rental payment, the full ownership is transferred to the customer.

Shariah Pronouncement

All praise to Allah and May peace and blessings be upon his messenger, his family, his companions and all followers of his guidance.

Shariah Structure of the Product

• This is a combination of partnership, lease and sale contract named Hire Purchase under Shirkatul Melk (HPSM).
• Bank and customer jointly buys the asset under partnership contract by providing equal or unequal amount
• Bank leases its portion of the asset to the customer for a specific period and customer pays monthly rent.
• Customer gradually buys Bank’s share of the asset.
• At the end of the contract the ownership of the asset is transferred to the customer.

Approval of Shariah Supervisory Committee

The Shariah Supervisory Committee of City Bank has reviewed Structured Finance Facility documentation, related contracts and process.

Therefore, We the “Shariah Supervisory Committee” for City Bank confirm that in our opinion the “Structured Finance Facility” is in accordance with the partnership, sale and lease principle of Islamic finance and hence we allow the bank to provide this product to its customer.

And Allah Knows Best.

Dr. Md. Anwar Hosain Molla
Chairman

Shariah Supervisory Committee, City Bank
This certificate was signed on Tuesday 11^th May 2021