Karachi: TCS has signed a Services Running Musharaka Financing Agreement with Al Baraka Bank (Pakistan) Ltd.
A Running Musharaka facility is effectively the Islamic equivalent for a Running Finance facility. This is the first Services Running Musharaka facility that Al Baraka Bank has offered to any of its corporate customers operating in Pakistan’s services sector.
An outstanding feature of the transaction is that product development for the facility has been jointly carried out by the TCS Treasury & Corporate Finance team led by Fahd Ali Sheikh and Al Baraka Bank’s Shariah and Corporate Banking teams led by Mufti Abdullah Siddiqui (Resident Shariah Advisor).
The Running Musharaka structure will now be replicated and rolled out by Al Baraka Bank and offered to its other top-tier corporate clients.
The product is aimed at meeting the financing needs of corporate clients under the Islamic concept of Shirkat (partnership), thus making it a unique Riba-free financing product, tailored to fit the business requirements of the corporate sector.
TCS will leverage this facility in order to further cement its No. 1 market position in the Pakistani express and logistics industry.
The agreement signing ceremony was attended by Ahmed Shuja Kidwai, Chief Operating Officer, and Abdul Razzaq, Group Head – CIBG, from Al Baraka Bank, and Raziuddin Ahmad, Group CFO, and Salman Akram, Country Head Corporate, from TCS.