Definition of investment and finance
Investment and financing means identifying the needs of individuals, organizations, and companies of cash and in-kind resources, determining the ways to collect and use them, purchase securities and other assets for the purpose of investing in them to achieve returns from them, considering the risks associated with the projects of those entities and the invested assets. It is concerned with exploiting the bank's internal and external resources to grant financing to its clients for various economic activities and sectors in accordance with the rules, regulations, and policies for granting financing issued by the Central Bank of Sudan and the Bank.
• Achieving a return from the invested resources.
• Providing the necessary capital to complete private and public projects
(individuals - companies - private and public organizations), which entail: -
o Providing new job opportunities that eliminate unemployment.
o Achieving economic development by activating local resources.
o Achieving the goals set by the government
• Providing work, housing, the means of production, Providing working capital for productive projects and individuals.
• Providing different types of financing (short term, medium term, long term) • Achieving financial stability and safety for the bank.
• Expanding the base of financial inclusion.
• Provide ownership of fixed assets for clients as a contribution to community development.
Investment and financing formulas :
The bank deals with all forms of Islamic finance in accordance with the jurisprudence guide. The formulas are as follows:
1. Murabaha, with both parts: Murabaha sale and Murabaha for ordering to buy.
2. Musharaka, Participation and diminishing participation ending with ownership.
3. Al sulam.
4. Contracting or Istisna’a.
5. Mudaraba, Restricted speculation.
7. Deferred Sale or installment sale
How to apply?
• The customer applies to the bank to obtain financing in one of the forms that suit his economic, commercial, industrial, agricultural, or service activity.
• The application specifies the amount and purpose of the financing, formula, guarantee, duration, and method of payment, with the submission of an economic feasibility study for the process.
• The investment department of the concerned branch will receive the client’s request and help him to complete and fulfill the rest of the requirements to implement the financing in accordance with the bank’s financing controls and the financing policy controls of the Central Bank of Sudan.
Documents required to grant funding:
1. The customer’s request and it must include (quadruple name, account number, phone number, required fund amount, fund formula, fund duration, and guarantees provided). The request must be handwritten for individuals and printed on a letterhead in the case of companies.
2. Approved activity certificate From the official authorities for individuals.
3. Pro forma invoice.
4. A detailed economic feasibility study from the client, including revenues and expenses.
5. The last filing with the Registrar of Companies, (ARNIC 7 in the case of companies).
6. Incorporation and articles of association of the company.
7. Delegation in the case of companies.
8. Copies of valid export contracts, in the case of export financing.
9. A recent a valid record of exporters and suppliers to the customer in case of export.
10. The last three budgets reviewed and approved by the Tax Office (for companies and business names, with exemption for individuals).
11. An opening budget reviewed and approved by the Tax Office (for companies and business names, in case the period of its establishment is recent) (less than a year).
12. Fill out forms A and B, related to clients' acknowledgment of existing investment operations and unpaid dues.
13. Fill in the statement of assets and liabilities in the case of individuals financing.
14. A certificate of ownership for real estate and equipments provided as collateral.
In the case of micro, small and medium finance
• The customer’s request to include (quadruple name, telephone, required fund amount, fund duration, and guarantees.
• A feasibility study for the project (the study of a small project is considered so that it does not include aspects of the large feasibility study).
• initial invoice.
• Proof of identity (national card and photographs).
• Certificate of residence from the locality.
• Certificate of ownership, lease, or partnership contract.
• Certificate of practicing an activity.
• Certificate of salary or pension in the case of workers and retiree to clarify the client’s income.
• Recommendation from two persons known to the bank for their competence.
• Registration certificate and the articles of association and articles of incorporation of companies and names of businesses and institutions.
• In the case of financing Rakshas, if the applicant is a woman, the husband or son must drive the Raksha.
• The maximum ceiling of micro, small and medium finance for agricultural and industrial productive purposes is 1,500,000 SDG.
Local currency financing formulas
• Murabaha formula (Murabaha sale and Murabaha for buy order
It is one of the Islamic financing formulas that the bank deals with, and it is a deferred sale process in which the bank sells the commodity to the customer based on the purchase price of the commodity plus an increase in a known profit (i.e., the sale at the same price as the selling capital or its cost with an increase in a known profit). It is described by the seller stating to the buyer the price at which he purchased the commodity or its cost and stipulating a profit on him and the customer must pay the sale price on deferred installments, and the customer can pay a premium in advance according to the nature of the process. There are more conditions and details in the Murabaha contract for the purchase order. To obtain financing, please refers to the method of application and the documents required for granting financing, which were previously mentioned.
• Formula of Musharaka and Diminishing Participation Ended with Tamleek
It is one of the legal formulas that the bank uses, and it is a contract whereby two or more persons are obligated with the bank that each of them contribute to the purchase of a specific commodity with a certain capital, in which the contribution of both the bank and the customer to the capital is determined, and at the end of the process, the Profit or loss arise from the process is divided in proportion to the contribution of each of the bank and the client in the capital after deducting the management margin in the event of profits. Musharaka ending with ownership is a partnership in which one of the partners pledges to gradually own the share of the other until he owns the entire project.
To obtain financing, please see the method of application and the documents required for granting financing, which was previously mentioned.
Restricted Mudaraba Formula
It is one of the Islamic formulas in which the customer speculates with the capital that he takes from the bank according to specific conditions in the mudaraba contract (represented in the time and place of the investment and the activity or the field in which the speculator works). The bank does not usually enter this formula except with customers who are known for their honesty and trust and have sufficient experience in such an activity. To obtain funding, please see the method of application and the documents required for granting funding, which was previously mentioned.
Al sulam sale
It is one of the Islamic sales in which the bank pays the price of the goods to the customer in advance (immediately) and is called the Sulam capital, in which the sale described in the liability is deferred and is called A L msalim in it, meaning that the customer delivers the goods to the bank deferred, which is often in the period in which the customer is able to deliver the goods. To obtain funding, please see the method of application and the documents required for granting funding, which was previously mentioned.
Contracting and Istisna'a
It is a contract under which the bank (the contractor) pledges to perform a work in return for a pay that the customer pledge in return for the bank’s fulfilments of its obligations. This pay is usually paid in the form of payments or installments (to carry out this work, the bank contracts with a contractor to carry out the work required by the customer), It is called Istisna’ when the work material is provided by the contractor . To obtain financing, please see the method of application and the documents required for granting financing, which was previously mentioned.
Installment Sale (Deferred Sale )
A type of deferred sale in which the sale is delivered and the price is delayed to be paid in payments or installments. To obtain funding, please see the method of application and the documents required for granting funding, which was previously mentioned.