Islamic Financial Intelligence Summit 2013 Finance for Industry Badlisyah Abdul Ghani Chief Executive Officer CIMB Islamic 11 November 2013

2 What type of investments are Islamic Financing good for in any industry? A question of Credit, Viability and Bankability What industry and who is eligible for Islamic Financing? Whatever industry so long as undertaking permitted activities Anyone and everyone! …taking into account credit worthiness, viability and bankability

3 Some of the financing needs of selected industries… Exploration expenses Funds to develop deposits Downstream modernisation Oil & Gas Sector Transportation sector, including aviation and shipping New aircraft purchases (including to refleet with more efficient aircraft, as fuel represents a third of operating costs for most airlines) Financing of second hand fleet Growth of leased aircraft Construction of vessels Acquisition of vessels Leasing of vessels Commercial and Residential Property Sector Project costs (including land acquisition and build costs) Long term property finance Short term development finance Bridging facilities Energy Sector Power plant construction and acquisitions Energy infrastructure Renewable/alternative energy projects Pharmaceuticals Sector Research & Development Manufacturing facilities New technology and automation Equipment acquisition M&A

4 Each industry participants are run by people with different background looking for different things in their financial dealing…

5 Stakeholders expectation for Islamic Finance influences how it serves any industry needs… Maqasid al shariah means in whatever we do we must serve the interests of all human beings and to save them from harm. This influences how each stakeholders expectations are articulated and propagated… Stakeholders Expectations Customers Good, competitive products No fraud and misrepresen- tations Real Shariah compliance of their choice Wealth Creation Shareholders Maximize profitability Social respon- sibilities Governments/Regulators Protect Public Interest, nation building Maximize financial inclusion Protect systemic integrity Proper wealth distribution Employees Good employment opportunities Serious and committed employer in doing the business

6 The reality of Islamic Financing and how it fulfills industry needs… The intermediation between the haves and have-nots in all customer segments fulfilling their financial needs consistent with Shariah. It works in the same way as conventional finance from a commercial perspective across all activities.

7 Some of the types of services Islamic Finance can offer different industries… CORPORATE BANKING PRODUCTS / SHARIAH CONCEPTS Term Financing Floating / Fixed Rate Term Financing-i IMBT Term Financing-i Commodity Murabahah Revolving Revolving Credit-i Commodity Murabahah Overdraft Cash Line-i Commodity Murabahah TRADE FINANCE - TRANSACTION BANKING PRODUCTS Documentary Credit-i (DC-i)/Wakalah Standby Documentary Credit-i (SDC-i) Trust Receipt-i (TR-i)/Murabahah Inward Bill Collection-i (IBC-i)/Wakalah Foreign Bills of Exchange Purchased-i (FBEP-i)/ Bai' al-Dayn Domestic Bills of Exchange Purchased-i (DBEP-i)/ Bai' al-Dayn Accepted Bills (AB-i)/Murabahah & Bai' al-Dayn Outward Bill Collection-i/Wakalah Inward Document Collection-i (IDC-i)/Wakalah Bank Guarantee-i (BG-i)/Kafalah Shipping Guarantee-i (SG-i)/Kafalah Foreign Exchange Contract Line-i (FECL-i) TREASURY – STRUCTURED PRODUCTS All products (available in CIMBnet) are based on Restricted Mudharabah FX Solutions - Based on Wa'ad, Bai'al- Sarf and Commodity Murabahah FX-Spot FX-Forward FX-Options FX-Structured Forward Derivatives - Based on Wa'ad and Commodity Murabahah Islamic Profit Rate Swap Cross Currency Profit Rate Swap Islamic Commodity Hedging Islamic Commodity Options Islamic Commodity Hybrids Products offered according to needs of client e.g. working capital, importing of items, purchase of equipment, etc. DEBT CAPITAL MARKET Islamic Commercial Paper (CP) Islamic Medium Term Notes (MTN) Plain Vanilla Sukuk & Trust Certificate Sub Sukuk Exchangeable Trust Certificate Islamic Asset Backed Securities (ABS) / Islamic Mortgage Backed Securities (MBS)

8 Contact Details Please direct all queries to: Badlisyah Abdul Ghani Executive Director, Chief Executive Officer CIMB Islamic Bank Website: Phone: