ASTANA (TCA) — The Development Bank of Kazakhstan (DBK) said that its subsidiary has funded its first transaction on the terms of Islamic leasing in Kazakhstan.
“A subsidiary of the Development Bank of Kazakhstan, DBK-Leasing, has opened a long-term lease financing (up to 10 years) of the project for the supply of tank wagons for the organization of rail transportation of LLP Istkomtrans,” DBK said on February 25.
The transaction in the amount of more than 1.1 billion tenge is the first project funded by DBK-Leasing on the terms of Islamic leasing, Ijara.
Ijara is the transfer of property (movable and immovable) on lease for a fixed period of time with a predetermined amount of payments. The subject of leasing, as equipment, remains the property of the lesser, which bears all the costs of insurance and maintenance of the property in good condition, the DBK explained.
Within the project, LLP Istkomtrans has leased 113 tank wagons for transportation of liquefied petroleum gas on domestic, international and transit routes. The tank wagons have improved technical and operational characteristics that correspond to Kazakhstan’s climatic and geographic conditions.
“This transaction is very important for the financial sector of Kazakhstan, as it expands the possibilities for attracting foreign investments in the economy. To ensure the development of Islamic finance in our country, it is necessary to use such instruments in active financial operations,” said Elena Kogai, deputy chairperson of DBK.
