Islamic Leasing: Aktif Bank starts to operate in Islamic Leasing in Turkey together with the Islamic Corporation for the Development of the Private Sector (ICD) and Ijara Management Company (IMC)

The Islamic Corporation for the Development of the Private Sector (ICD), Aktif Bank and Ijara Management Company Sign Shareholders Agreement for Joint Strategic Collaboration in Haliç Finansal Kiralama A.Ş. Haliç Leasing will be able to raise the long-term funds locally and internationally via Sukuk issuances thanks to extensive knowledge of Aktif Bank on capital markets

Aktif Bank, working with a philosophy to do “New Generation Banking” via widening its products and services through alternative distribution channels, has entered into the Turkish leasing sector by acquiring 32% shares of Halic Leasing in addition to leveraging its multinational expertise in Islamic leasing (ijara). Through this investment, Aktif Bank is planning to primarily fund the growth of SMEs, and will focus on financing their state of art technology machinery and equipment investments.

The strategic collaboration between the parties aim to position Haliç Leasing as the only financial leasing company in Turkey that offers products that are in line with Shariah requirements for its clients. The Company will also be positioned to fill the market gap that is not covered by the larger leasing companies especially those that are owned by local banks. Haliç Leasing will be able to raise the long term funds locally and internationally via Sukuk issuances thanks to extensive knowledge of Aktif Bank on capital markets.

The Chief Executive Officer & General Manager of Aktif Bank, Dr. Serdar Sümer, commented that: “Instead of increasing the number of our branches, we focus on diversifying our products and alternative distribution channels as per our sustainable efficiency-focused growth strategy. In addition to Retail, Corporate and Investment Banking, we also offer a wide range of products and services to our clients; namely money transfers, insurance, card products and comprehensive kiosk solutions. Together with our multinational partners experienced in Islamic leasing sector, we have decided to move forward with this partnership with the primary aim of transferring our expertise particularly to SMEs. I wish that this partnership will bring all the best to Aktif Bank, industry, and the clients.

The Chief Executive Officer & General Manager of ICD, Mr. Khaled Al Aboodi, said that ICD’s investment in Haliç Leasing is part of its channels strategy in the member countries to establish or invest in at least one financial intermediary in each member country. The goal of this strategy is to enhance access to finance for micro, small and medium enterprises in the countries as well as continue to promote the development of Islamic finance in those countries. Haliç Leasing will be the eleventh Islamic leasing (Ijara) company that ICD has invested. As a strategic partner in the company, ICD will utilize its extensive experience and expertise, which have been accumulated over the course of establishing similar Ijara companies in ten member countries across the globe, to ensure that the company meets its stated goals and objectives.

Distributed by APO on behalf of Islamic Corporation for the Development of the Private Sector (ICD).
About the Islamic Corporation for the Development of the Private Sector (ICD):
The Islamic Corporation for the Development of the Private Sector (ICD) (www.ICD-IDB.org) is a multilateral organization, part of the Islamic Development Bank (IDB) Group. ICD was established in November 1999 to promote economic development of its member countries in accordance with the principles of the Sharia through private sector development. ICD encourages the establishment, expansion and modernization of private enterprises through financing private sector enterprises or projects. Projects are selected on the basis of their contribution to economic development considering factors such as creation of employment opportunities and contribution to exports. ICD also provides advice to governments and private sector groups on policies to encourage the establishment, expansion and modernization of private enterprises, development of capital markets, best management practices and enhance the role of market economy. ICD operations complement the activities of the IDB.

About Aktif Yatırım Bankası A.Ş. (Aktif Bank):
Turkey’s largest privately owned investment bank, Aktif Bank (www.AktifBank.com.tr), operates in the fields of Retail, Corporate, and Investment Banking. Focusing on a branchless business model with alternative distribution channels, Aktif Bank and its subsidiaries are an organization offering smart city services to a population of 50 million, acting as the intermediary for 1.5 billion transportation card transactions, distributing one million new bank cards, handling more than one million money transfers, almost 10 million invoice and other payments, and selling more than 150,000 retail loan and insurance policies. As a result of its success, Aktif Bank has been rewarded with 97 international prizes in the last 5 years, including the “World’s Most Innovative Bank” award from Financial World Innovation Awards.

About Ijara Management Company (IMC):
Ijara Management Company (IMC) (www.Ijara.co) was incorporated in November 2010 and is a wholly owned subsidiary of the Islamic Corporation for the Development of the Private Sector (ICD). With ICD’s vision to set up Islamic leasing companies and to ensure that all these companies follows the highest standards of Corporate Governance and best International practices, IMC assists in setting up of leasing Companies in the member countries of ICD and beyond. IMC have already set up 10 leasing companies in the following countries, namely Azerbaijan, Uzbekistan, Kazakhstan, Malaysia, Tajikistan, Kyrgyzstan, Albania, Palestine, Tatarstan and Egypt.
IMC provides Technical & Management Services to the leasing projects and ensuring that the Leasing Company is successfully set up with quick start up and reduced time lag for each activities in a focused and phased manner, thereby resulting in reduced costs, without compromising on the standards on any front to ensure reduced costs.

SOURCE
Islamic Corporation for the Development of the Private Sector (ICD)