islamic banking brochure 2012 eng

8/14/2019 Islamic Banking Brochure 2012 Eng

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GLOBAL ISLAMIC BANKING

A rich history,an ambitious future


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Crdit Agricole CIB offers comprehensive Corporate


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and Investment Banking services to its clients globally.


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Coverage & Investment Banking

Retail Banking Regional platform

Branch, Affiliate or Rep. Office

Sao Paulo

HONG KONG

PARIS

LONDON

NEW YORK

MontrealChicago

Mexico

Buenos Aires

Brussels

Frankfurt

Geneva

Madrid

Alger

Tripoli

Dubai / Abu Dhabi

MumbaiAhmadab ad

Bangalore

Chennai

New Delhi

Pune

Stockholm

HelsinkiMoscow

Singapore

Sydney

Taipei

Shanghai

Beijing

GuangzhouTianjin

Xiamen

SeoulTokyoOsaka

Milan

Oslo

Crdit Agricole Grouphas been present in the Middle East and South East

Asia for more than 50 years. Crdit Agricoles in-depth knowledge of these

markets is enhanced through its solid partnerships with local investors and

corporate clients. Through its local and regional branches, Crdit Agricole

offers comprehensive Corporate and Investment Banking services that best

meet its clients requirements.

Crdit Agricole is a major player in the global financial markets, with its high ratings and solid

financial position. It is one of Europes leading financing and investment houses.

Merger ofBanque de Suezand Banque delIndochine to formBanque Indosuez.

Creation of Calyon,the new brand andcorporate name ofthe Crdit Agricolegroups corporateand investmentbanking business,through the partial

transfer of assetsfrom Crdit Lyonnaisto Crdit AgricoleIndosuez.

Acquisition ofBanque Indosuezby Crdit Agricole tocreate its wholesaleinternationalbanking arm.

Successfulcombined friendlytakeover bid forCrdit Lyonnaisby Crdit Agricole.

1975 May 20041996 May 2003

Calyon becomesCrdit Agricole CIB.

February 2010

4


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Crdit Agricole SA, one of the worlds largest banks, has

leading positions in the following business lines:

Retail Banking;

Specialised Financial Services;

Asset Management; Corporate and Investment Banking;

International Retail Banking.

Source: The Banker, July 2012

Crdit Agricole is the Worlds No. 13

Bank by Tier One Capital... and No. 6 Bank by Total Assets

Top 25 by Tier One Capital2011 (year-end)

Top 25 by Total Assets2011 (year-end)

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Rank Bank (USD million)

1 Bank of America 159 232

2 JPMorgan Chase & Co 150 384

3 ICBC 140 028

4 HSBC Holdings 139 590

5 Citigroup 131 874

6 China Construction Bank Corp 119 135

7 Mitsubishi UFJ Financial Group 117 018

8 Wells Fargo & Co 113 952

9 Bank of China 111 173

10 Agricultural Bank of China 96 413

11 BNP Paribas 91 858

12 Royal Bank of Scotland (RBS) 88 112

13 Crdit Agricole 80 222

14 Banco Santander 79 897

15 Barclays 78 036

16 Mizuho Financial Group 77 879

17 Sumitomo Mitsui Financial Group 76 377

18 Lloyds Banking Group 68 024

19 Deutsche Bank 63 462

20 Goldman Sachs 63 262

21 UniCredit 55 530

22 Norinchukin Bank 53 837

23 Groupe BPCE 53 175

24 Morgan Stanley 52 352

25 ING Bank 49 973

Rank Bank (USD million)

1 Deutsche Bank 2 800 133

2 Mitsubishi UFJ Financial Group 2 664 171

3 HSBC Holdings 2 555 579

4 BNP Paribas 2 542 880

5 ICBC 2 456 295

6 Crdit Agricole 2 431 932

7 Barclays 2 417 369

8 Royal Bank of Scotland (RBS) 2 329 767

9 JPMorgan Chase & Co 2 265 792

10 Bank of America 2 136 578

11 Mizuho Financial Group 2 012 909

12 China Construction Bank Corp 1 949 219

13 Bank of China 1 877 520

14 Citigroup 1 873 878

15 Agricultural Bank of China 1 853 319

16 Sumitomo Mitsui Financial Group 1 741 213

17 Banco Santander 1 619 349

18 Socit Gnrale 1 528 577

19 UBS 1 508 303

20 Lloyds Banking Group 1 500 561

21 Groupe BPCE 1 472 969

22 Wells Fargo & Co 1 313 867

23 ING Bank 1 243 651

24 Unicredit 1 199 146

25 Crdit Suisse Group 1 115 065


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Singapore

Dubai

Worldwide Reach

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Based in the Dubai International Financial

Center, the Global Islamic Banking team

extends its reach globally via the Banks

presence at different geographic locations.

We are therefore able to provide Shariah-

compliant solutions to our customers in allthe countries that Crdit Agricole CIB covers.

Although the Bank has been active in Islamic

Finance for over 15 years, it was in 2004 that

Crdit Agricole CIB set a dedicated Islamic

window (Global Islamic Banking). Capitalizing

on the Groups strength and unique market

position, the Global Islamic Banking team

has been very active in Islamic Finance, as

evidenced by the numerous awards wonover the years. The Global Islamic banking

team continues to positively contribute to

this evolving and growing market, with

leading roles in many landmark transactions.


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Global Islamic BankingA Rapidly Growing Financial Segment

Islamic Banking has a similar purpose to

ethical banking but operates in accordance

with the rules of Islamic law (Shariah). The

basic principle of Shariah is the sharing of

profit and loss and the prohibition of riba

(interest) and Gharar (uncertainty).

Although Islamic Banking evolved to provide

a viable and Shariah-compliant alternative

to conventional finance, it has now become

the fastest growing segment in financial

markets across Asia, Africa and Europe.

Crdit Agricole has been offering a broad

range of Islamic financial services and

banking activities for many years, and in

2004 set up a dedicated Islamic Banking

team to cater to this important segment.

Crdit Agricole Global Islamic Banking

provides the advantages of an innovative

and effective range of Islamic investment

and risk management products supported

by an A rated international bank with a

historic presence in the Middle East and

Asia. Our Islamic financial instruments are

developed in close cooperation with

our board of Shariah scholars, who are

widely considered to be amongst the leading

and most respected scholars in the industry.

This insures that our products satisfy

Shariah whilst at the same time meeting our

clients objectives.

Headquartered in Dubai at the Dubai

International Financial Center, with global

coverage including Europe, Asia and

North America, our team works across all

business lines in the bank to create financial

instruments that allow our clients to invest

and manage risk using Shariah-compliant

structures.

In addition, by providing Islamic structures

to conventional clients, we facilitate the

flow of capital between these two distinct

financial sectors.

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The emergence of Islamic financial services is one of the most important

developments in the financial markets, with total invested funds estimated at

$1 trillion globally. Islamic Banking evolved in order to create an alternative

financial system to conventional banking. Islamic Banking is based on an

ethical and equitable mode of finance.


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Crdit Agricole, a recognized global leader,

has a strong track record in working with its

clients to meet their financing and capital

markets needs within the GCC*, Asia Pacific

and Europe.

Crdit Agricoles Global Islamic Banking

team has been involved in some of the

most prominent projects in the Middle Eastthat have earned it an outstanding reputation

in the market. Our ability to serve our global

client base is unparalleled. Our Islamic team

combines specific financial product expertise

across the range of strategic advice, risk

management and capital raising with a

specialised knowledge of Shariah.

Crdit Agricoles Global Islamic Banking

team is a very active contributor to the Islamic

banking industry, through governing bodies

such as the International Islamic Financial

Market (IIFM). The IIFMs primary focus lies

on the standardization of Islamic financialproducts, documentation and related

processes at the global level. The Global

Islamic Banking team has been an active

participant in the IIFM through our board

membership in the organization since 2006.

Shariah Advisory Board:

Crdit Agricoles Shariah Advisory Board consists of independent Shariah scholars

who advise Crdit Agricole on matters related to Shariah and are committed to the

Bank for the long term. This board is comprised of:

Sheikh Nizam S. Yaquby

Dr. Mohamed Ali Elgari

Dr. Abdul Sattar Abu Ghuddah

The scholars are renowned in the industry for their deep knowledge of both Shariah

law and finance. They work closely with the Global Islamic Banking team to ensure

proper application of Shariah standards.

*GCC: Gulf Cooperation Council, members are United Arab Emirates, Bahrain, Saudi Arabia, Kuwait, Qatar and Oman.


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Credit and Rates

Rates, Credit & Cross-Asset Derivatives

(Profit Rate Swap, Cross Currency Swap)

Global Debt Markets

Debt Capital Markets (Sukuk)

Securitisation

Foreign Exchange

and Treasury

Foreign Exchange

(FX Waad, Islamic

FX Swap, Islamic FX

Outright Based on

Unilateral Waads)

Treasury

(Murabaha)

Global Sector Groups

Telecom, Media & Technology

Oil & Gas

Metals & Mining

Agribusiness

Financial Institutions& Real Estate

Mergers & Acquisitions

Other Sector Groups

Commercial Banking

& Trade

Commercial Banking

Trade Finance

Export Finance

Aviation & Rail Finance

Global Ship Finance

Global Energy Group

Natural Resources,

Infrastructure & Power

Transactional Commodity

Finance

Crdit Agricole CIBs Islamic Product OfferingThe Global Islamic Banking team offers the Banks customers a wide range of products

and services that meet their requirements. Below is a sampling of our offerings, with

each product being tailored to suit the customers unique needs:

Private BankingCrdit AgricoleSuisse S.A.

Crdit Agricole Group

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Global Islamic Banking (GISB)

Debt Optimisation &

Distribution (DOD)


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Global Islamic AwardsCrdit Agricole CIB has been acknowledged through the following awards for landmarktransactions between 2008 and 2011.

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Best Deal ofthe Year 2011

Islamic Finance

News Awards

Project Finance Dealof the Year 2011

Islamic Finance

News Awards

Saudi Arabia Dealof the Year 2011

Islamic Finance

News Awards

Most ImprovedInternationalIslamic Bank 2011

Euromoney Islamic

Finance Awards 2011

Best Project FinanceDeal 2010

Euromoney Islamic

Finance Awards 2010

Deal of the Year2010

Euromoney Islamic

Finance Awards 2010

Best Islamic ProjectFinance Deal 2009

Asset Asian Awards 2009

Triple A

Best Islamic ProjectFinance House 2009


Triple A

Most Innovative IslamicFinance Deal 2009


Triple A

Most Improved IslamicFinance House 2009

Euromoney IslamicFinance Awards 2009

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Islamic BondAward

2009

IFR Awards 2009

Bahrain Deal ofthe Year 2008

Islamic Finance

News Awards

Project FinanceDeal of the Year 2008

Islamic Finance

News Awards

2008

Project Finance Dealof the Year 2008

IFR Awards2009

2008

2011 2011 2011

Syndicate Deal ofthe Year 2008

Islamic Finance

News Awards

2008


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pocket


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Crdit Agricole Global Islamic Banking

Al Fattan Currency HouseTower 2 Level 21, DIFC

PO Box 506611, Dubai, UAETel: +971 (04) 376 1101

[email protected]

Profle

The Crdit Agricole Group is market leader in Universal Customer-Focused Banking in

France and one of the largest banks in Europe.

The Crdit Agricole Group seeks to serve the real economy by supporting its clients

projects in all areas of retail baning and associated specialised business lines.

Emphasising its values and commitment, the Crdit Agricole Group is the bank of common

sense. It puts the satisfaction and the interests of its 54 million customers, 160,000

employees, 1.2 million shareholders and 6.5 million cooperative shareholders at the heart

of its activities.

Crdit Agricole remains true to its co-operative and mutual origins by pursuing a proactive

policy in terms of social and environmental responsibility. As part of this policy, the Group is

making continual progress on behalf of its customers, staff and the environment, as provenby quantitative indicators.

www.credit-agricole.com

54 millionclients worlwide

35.1 billionrevenues

812 millionnet income Group share

160,000employees

370.7 billionshareholders equity

Group share

10.2%Core Tier One Ratio

unfoored

(as of December 2011)

Assessments of rating agencies

Short-term rating Long-term rating

Standard & Poors A -1 AFitch Ratings F1+ A+

Moodys Prime -1 A2

Pictures: shutterstock.com, istock.com


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Murabaha: Short/Medium TermFinanceMurabaha

Murabahais a Sharia compliant structure where Crdit Agricole CIB purchasesthe goods (as requested by, and on behalf of the Client) and sells the goods at amark-up on deferred credit terms to the Client. This is the most widely usedIslamic structure, and transactions worth billions of USD are conducted daily inthe market.

A Murabaha can take one of two forms: SyntheticCommodity Murabaha(for cash based transactions that are

non-asset-based)

Traditional/Genuine Murabaha(for Trade Finance, asset-based purchases, etc.)

Features Many uses, including inventory financing, asset-based financing

Bridge financing for purchase of equipment, shares, and down payments onaircraft and ship finance, etc.

Financing of commodity purchases (Oil, Metal, etc.)

Tenor based on commercial needs

Credit Enhancement Can be provided through Corporate Guarantees

Can be enhanced through ECA support The structures have been approved by Crdit Agricole CIBs Sharia Board

members composed of Sheikh Nizam Yaquby, Dr. Mohammed Elgari andDr. Abdulsattar Abu Ghuddah.

Purpose of Murabaha Commodity Murabaha is

the purchase and sale ofSharia compliantcommodities, betweenCrdit Agricole CIB andthe counterparty. Theresulting outcome iseither a financing ordeposit.

Under a financingstructure, Crdit

Agricole CIB purchasescommodities at spotrate and sells them at anagreed markup to thecounterparty with spotdelivery and deferredpayment.

Commodity Murabaha isthe main tool for Islamicbanks to manage theirliquidity.


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Global Islamic Banking

Disclaimer:

This document has been prepared by Crdit Agricole Corporate and Investment Bank or one of its aff iliates (CA-CIB) forinformation purposes only. Nothing in this document is to be construed as an offer for services or products or as an offer orsolicitation for the purchase or sale of securities or any other financial product. This documents has no regard to the specificinvestment objectives, financial situations or individual needs of any recipient. It is not intended to provide legal, tax, accounting orother advice and recipients should obtain independent professional advice from legal, tax, accounting or other appropriateprofessional advisers before embarking on any course of action. While the information in this document is based on sourcesbelieved to be reliable, no guarantee, representation or warranty, express or implied, is made as to its accuracy, correctness orcompleteness. This document contains indicative summaries of the terms and conditions of products described herein and may beamended, superseded or replaced by subsequent summaries. The f inal terms and conditions of the products will be set out in fullin the applicable legal documentation. This document may contain assumptions or include projections, forecasts, yields or returns,scenario analyses and proposed or expected portfolio composi tions. Actual events or conditions may not be consistent with, andmay differ materially from, those assumed. Past performance is not necessarily a guide to future performance. CA CIB shall not beresponsible or liable, directly or indirectly, for any direct or consequential damage or loss caused or a lleged to be caused by or inconnection with the use of or reliance on this presentation.

Crdit Agricole Corporate and Investment Bank, DIFC Branch is authorized by the Dubai Financial Services Authority. CrditAgricole Corporate and Investment Bank is incorporated in France and registered in England & Wales. Registration number:FC008194. Registered office: Broadwalk House, 5 Appold Street, London, EC2A 2DA.

www.ca-cib.com

Murabaha: Short/MediumTerm Finance

Simplified asset-based Murabaha Structure

Payment on adeferred basis ofPurchase Price

plus Profit($X + $Y)

Transfer oftitle to

client

VENDORPayment of

Purchase Price($X)

CRDITAGRICOLE

CIBCLIENT

Transfer oftitle to Crdit

Agricole CIB

Commodity Murabha Mechanism Purchase:Crdit Agricole CIB will purchase the asset from the Vendor (the Purchase Price). The title

is transferred to Crdit Agricole CIB.

Sale with Deferred Payment:Crdit Agricole CIB will immediately thereafter sell the same Asset tothe Client at a Deferred Price (Purchase Price plus the Murabaha Profit Amount ) on deferred credit

terms.

The title is transferred to the Client after the settlement of all obligations towards Crdit Agricole CIBby the Client.

The Murabaha structure has been used in the following landmark transactions:

August2009

Structured Murabha Facility

Kingdom of Saudi Arabia

US$ 2,500,000,000

Mandated Lead Arranger

Bookrunner

O

ctober2008

Commodity Murabaha

United Arab Emirates

US$ 2,250,000,000


Deal of the Year 2010


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Export & Trade Finance Products Sharia-compliant structures are widely used for Export & Trade Finance transactions. Some of the products

include Murabaha, Ijara, Guarantees, Letters of Credit, Islamic Master Risk Participation Agreement, andExport Credit Agency.

Murabahacan be described as a purchase contract with a deferred payment obligationconcluded betweenthe Bank (Seller) and the Client (Purchaser).

Ijarais a lease contract where the Bank will buy the goods/equipment and lease them to the Client. Atmaturity, the ownership of the Asset is transferred to the Client. The Client purchases the goods/equipmentas agent for the Bank. The purchase and sale price, other costs, and the profit margin must be clearly statedat the time of the sale agreement.

Sharia-compliant guaranteesfollow the same principals as conventional guarantees. Letters of Credit:Only funded LCs will require an underlying Sharia-compliant structure:

Funded LCs:

A Funded Letter of Credit is where the Client needs funding for imports. Crdit Agricole CIB will use TradeMurabaha as underlying Islamic structure.

Unfunded LCs:

An Unfunded Letter of Credit does not need an Islamic underlying structure as the Issuing Bank willguarantee the payment to the Beneficiary without committing its balance sheet. Conventionaldocumentation can be used.

The Islamic Master Risk Participation Agreement (IMRPA)is a product that offers investors theopportunity to participate in Sharia-compliant trade finance transactions arranged by Crdit Agricole CIB.

Murabaha and Ijara can accommodate structures involvingExport Credit Agency(ECA)structures. IslamicECA transactions are similar to their conventional equivalents framework documentation, and take intoaccount the Islamic nature of the financing structure.

The structures have been approved by Crdit Agricole CIBs Sharia Board members composed of SheikhNizam Yaquby, Dr. Mohammed Elgari and Dr. Abdulsattar Abu Ghuddah.


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Disclaimer:



www.ca-cib.com

Export & Trade FinanceProducts

Select Sharia-based transactions include:

March2008

Trade Finance & Murabaha

Financing Facility

US$ 854,000,000


December2009

TELECOM COMPANY

ECA Financing

EUR 27,000,000

Sole Arranger


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Sukuk Islamic BondsPurpose of Sukuk

Sukuk is a Sharia Compliant capital market instrument that has similar use to a conventional bond.

The concept of Sukukdates back to the very first days of Islamic civilization. However, only recently has itreemerged to become a commonly used Islamic Finance tool.

Sukuk can be issued under various structures. The most widely used struture by Sovereigns is SukukAl-Ijara, which is a lease-based instrument

The Primary Subscriber can resell Sukuk certificates in the secondary market. The secondary market buyertherefore becomes the new bona fide owner of the Sukuk,and entitled to the income generated from the underlying assets.

Sukuk can be structured as a Regulation S and Rule 144A transaction and rated by an international ratingagency.

Sukuk will enable the issuer to access a new class of investors around the globe.

Although Sukuk are comparable to conventional bonds, there are several key differences, some of which arehighlighted below:

*Example of applicable assets: roads, plants, infrastructure, land, vessels, planes, residential and commercial real estate

The structure has been approved by Crdit Agricole CIBs Sharia Board members composed of SheikhNizam Yaquby, Dr. Mohammed Elgari and Dr. Abdulsattar Abu Ghuddah.

Overview Conventional Bond Sukuk al Ijara

Nature of underlying asset Not necessary Must be unencumbered; balance between

number of assets and value of assets to ease

legal process*

Useful life of asset N/A Subject to normal wear and tear

Payment of Principal and Coupon Coupon 100% Debt, represents asset sale to Issuer,

linked to rent & provisions of usufruct

Investor Acceptability Conventional Sharia compliant investors and conventional

Geographical issues No issues (bar regulatory) Limited to country of assets

Size of issue Investor demand Value of underlying assets

Rating Applicable or non applicable Same

Listing As required Same

Clearing and Format Euroclear and Clearstream, Standalone,

EMTN, PP, Hybrid, Convertible,

Exchangeable

Same

Sharia endorsement Not necessary Necessary


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Disclaimer:



www.ca-cib.com

Sukuk Islamic Bonds

Sukuk Al-Ijara A lease-based instrument

Product

Sukuk Al-Ijara

Description

Islamic Lease-based Securities. Trust Notes or Certificates similar to Equipment Trust Certificates (ETCs)and Unit Trusts

Features

Issuer creates a trust over the leased Assets

Trustee issues Sukuk to the Primary Subscribers in the Primary Market

Sukuk Holders have pro-rata undivided beneficial ownership of the leased assets held in trust

The Primary Subscriber can resell the Sukuk in the secondary market

The following award-winning transactions were Sukuk based:

May2008

Sukuk Al Istithmar

Corporate


SAR 5,000,000,000


Bookrunner

October2011

Project Finance Sukuk

Projected Structural Finance


SAR 3,750,000,000

Joint Lead Arranger

June2009

Sukuk Al-Ijara

Kingdom of Bahrain

US$ 750,000,000

Joint Bookrunner


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FX Waad(FX Option)Waad

A Waadis a unilateral undertaking from the Promisor to the Promisee. The Waad is a unilateral promise. It is only binding on the Promisor and not on the Promisee. The Promisor can receive a fee for its undertaking.

A Waad can be used to replicate the economics of a conventional FX option.

Structure Mechanics

On the start date of the transaction, Crdit Agricole CIB will undertake to theInvestor to exchange Currency 1 against Currency 2 at a pre-agreed rate on afuture date.

On the same date, Crdit Agricole CIB will receive a fee from the Investor for itsundertaking.

On the future date, the Investor might ask Crdit Agricole CIB to fulfill its promiseor might release Crdit Agricole CIB from its undertaking.

In case the Investor asks Crdit Agricole CIB to execute its Waad, the InvestorandCrdit Agricole CIB will exchange the two currencies at the pre-agreed rate

Features

This product can be used only for hedging or cost reduction purposes andcannot be traded for speculative purposes.

The structure has been approved by Crdit Agricole CIBs Sharia Boardcomposed of Sheikh Nizam Yaquby, Dr. Mohammed Elgari and Dr. Abdulsattar

Abu Ghuddah.

The Investor will pay a fee on the start date against Crdit Agricole CIBundertaking.

On the Maturity date, if the Investor wants to execute the Waad, Crdit AgricoleCIB and the Investor will exchange the currencies.

Purposes of FX Waad The FX Waad is mostly

used to managecurrency risk associatedwith investments.

FX Waad allowsinvestors who holdCurrency 1 and need toinvest in Currency 2.

Company A has $100cash and will need theequivalent in EUR in one

year without beingpenalized by the EUR/USD Spot Rate volatility.

Case 1 No protection

Company A owns $100on the start date with acurrent spot rate of 1.45(=70). After one year,spot rate has moved to1.60, and Company Aexchanges its $100resulting in 62.5.

7.5 lossCase 2 FX Waad

protection

Company A owns $100on the start date with acurrent spot rate of 1.45(=70). Company Aenters into a FX Waadto buy EUR against USDat 1.45 in one year for a$2 fee. After one year,spot rate has moved to

1.60 ($100 = 62.5), andCompany A exchangesits $100 resulting in 70.6 saving (7.5-$2)


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Disclaimer:

This document has been prepared by Crdit Agr icole Corporate and Investment Bank or one of itsaffiliates (CA-CIB) for information purposes only. Nothing in this document is to be construed asan offer for services or products or as an offer or solicitation for the purchase or sale of securi ties orany other financial product. This documents has no regard to the specific investment objectives,

financial situations or individual needs of any recipient. It is not intended to provide legal, tax,accounting or other advice and recipients should obtain independent professional advice fromlegal, tax, accounting or other appropriate professional advisers before embarking on any courseof action. While the information in this document is based on sources believed to be reliable, noguarantee, representation or warranty, express or impl ied, is made as to its accuracy, correctnessor completeness. This document contains indicative summaries of the terms and conditions ofproducts described herein and may be amended, superseded or replaced by subsequentsummaries. The final terms and conditions of the products will be set out in full in the applicablelegal documentation. This document may contain assumptions or include projections, forecasts,yields or returns, scenario analyses and proposed or expected portfolio compositions. Actualevents or conditions may not be consistent with, and may differ materially from, those assumed.Past performance is not necessarily a guide to future performance. CA CIB shall not be responsibleor liable, directly or indirectly, for any direct or consequential damage or loss caused or alleged tobe caused by or in connection with the use of or reliance on this presentation.

Crdit Agricole Corporate and Investment Bank, DIFC Branch is authorized by the Dubai FinancialServices Authority. Crdit Agricole Corporate and Investment Bank is incorporated in France andregistered in England & Wales. Registration number: FC008194. Registered office: BroadwalkHouse, 5 Appold Street, London, EC2A 2DA.

www.ca-cib.com


Islamic FX Outright(Based on Unilateral Waads)Waad

A Waadis a unilateral undertaking from the Promisor to the Promisee. The Waad is a unilateral promise.

It is only binding on the Promisor and not on the Promisee. The Promisor can receive a fee for its undertaking.

A Waad can be used to replicate the economics of a conventional FX option.

Structure Mechanics

On the start date of the transaction:

Crdit Agricole CIB will undertake to the Investor to exchange Currency 1against Currency 2 at a pre-agreed rate at a future date.

Through a second and independent Waad, the Investor will undertake to CrditAgricole CIB to exchange Currency 2 against Currency 1 at a pre-agreed rate ata future date (similar to Crdit Agricole CIBs undertaking).

On the future date, the Investor and Crdit Agricole CIB agree to execute oneWaad and to give up the other one.

Using this structure, we enable the Investor to receive Currency 2 against Currency1 on a future date.

Features

This product can be used only for hedging or cost reduction purposes andcannot be traded for speculative purposes.

The structure has been approved by Crdit Agricole CIBs Sharia Board composedof Sheikh Nizam Yaquby, Dr. Mohammed Elgari and Dr. Abdulsattar Abu Ghuddah.

The Investor and Crdit Agricole CIB are undertaking unilaterally and independentlyto exchange two currencies.

On the Maturity date, one promise will be given up (since it will be out of themoney) and the other one will be executed in order to exchange the twocurrencies.

Purposes of Islamic FXOutright

The Islamic FX Outrightis mostly used tomanage currency riskassociated withinvestments.

Islamic FX Outrightallows investors whohold Currency 1 toexchange it into Currency2 at a future date at a

pre-agreed rate. Company A has $100

cash and will need theequivalent in EUR in oneyear without beingpenalized by the EUR/USD Spot Rate volatility.


Company A owns $100on the start date with acurrent spot rate of 1.45(=70). After one year,spot rate has moved to1.60, and Company Aexchanges its $100resulting in 62.5.7.5 loss

Case 2 Islamic FX

Outright protection

Company A owns $100on the start date with acurrent spot rate of 1.45(=70). Company Aenters into an Islamic FXOutright to buy EUR

against USD at 1.45.After one year, spot ratehas moved to 1.60($100 = 62.5), andCompany A exchangesits $100 resulting in 70.7.5 saving



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Islamic FX Swap(Murabaha/Reverse Murabaha)Murabaha

A Murabahais the purchase and sale of Sharia compliant commodities, betweenCrdit Agricole CIB and the Investor, to result in either a deposit or a financing.

In order to achieve a deposit, Crdit Agricole CIB purchases commodities asAgent for the Investor at spot and sells those commodities to Crdit Agricole CIBon deferred payment terms, such deferred profit reflecting the return on thedeposit. Crdit Agricole CIB sells the commodities at spot in order to obtain thecash reflecting the Investors deposit.

The deferred sale price is always higher than the purchase price, reflecting thereturn on the deposit, and must be known at the time of the Murabahatransaction.

Structure Mechanics

The Islamic FX Swapis a Murabaha in Currency 1 against another Murabaha inCurrency 2 where both Murabahas are paying fixed rate profits.

Economically, through this structure, we aim to replicate the economic effects ofanFX swap.

On the start date: The Investor will enter into a Murabaha in Currency 1 with Crdit Agricole CIB

where the Investor will pay a fixed profit to Crdit Agricole CIB.

Concurrently, Crdit Agricole CIB will enter into a Murabaha in Currency 2 withthe Investor where Crdit Agricole CIB will pay a fixed profit to the Investor.

The tenor of each Murabahas is the same.

On the deferred payment date, Crdit Agricole CIB will receive a fixed profit inCurrency 1 and the Investor will receive a fixed profit in Currency 2.

Features

The transaction is funded and the notional amounts are exchanged on the startdate. At maturity, the notional amounts are returned.

Commodity trading costs are significant (up to 5 bps per annum) and are borneby Crdit Agricole CIB.

This product is only for hedging or cost reduction purposes and cannot betraded for speculative purposes.

The structure has been approved by Crdit Agricole CIBs Sharia Boardcomposed of Sheikh Nizam Yaquby, Dr. Mohammed Elgari andDr. Abdulsattar Abu Ghuddah.

Purpose of IslamicFX Swap

The Islamic FX Swap ismostly used to managecurrency risk associatedwith investments. It willallow Investor whoholds Currency 1 toinvest in Currency 2 fora defined period of timeto mitigate currency risk

Company A has $100

cash and wishes toinvest in EUR for oneyear.


Company A converts its$100 on the start date @1.50 and will receive66.66. After one year,Company A exchangesback the 66.66 to USDollars. Spot rate hasmoved to 1.20, and

Company A receives$80 resulting in $20loss

Case 2 Islamic FX swap

protection

Company A enters intoan Islamic FX swap withCrdit Agricole CIB.Through the Murabahaand Reverse Murabaha,Company A will receive66.66 against $100.

After one year,Company A receivesback $100 (+ $ profitrate) against thepayment of 66.66(+ profit rate).$0 loss

Investor

Metals Supplier

Crdit Agricole

CIB Agent

(1) $100

(2) $100 (3) Metals

(4) Metals

(7) ($100+Profit)paid deferred

Metals Purchaser

(6) $100 (5) Metals

Crdit Agricole

CIB Principal


22/32


Disclaimer:



www.ca-cib.com

Islamic FX Swap (Murabaha/

Reverse Murabaha)

Illustration

1 Year EUR/USD Islamic FX Swap (Murabaha/Reverse Murabaha)

Features:Notional amount: USD 14,500,000

Tenor: 1 year

Underlying: EUR/USD Spot

Initial Spot Rate: 1.45

Maturity Spot Rate: 1.43 The Maturity Spot Rate will be determined according to EUR

and USD Interest Rates

USD Profit Rate: 1bp p.a.

EUR Profit Rate: 1.40874% p.a.

Profit payment: At maturity Structure:

The Investor enters in a Murabaha for USD 14,500,000 with Crdit Agricole CIB where Crdit Agricole CIBwill pay 1bp profit.

Crdit Agricole CIB enters in a Murabaha for EUR 10,000,000 with the Investor where the Investor will pay1.41% profit.

Sequences:

Investor Cash Flow Crdit Agricole CIB Cash Flow

Trade Annualizedreturn

PurchasePrice

SalePrice Start date End date Start date End date

USD

Murabaha 1bp 14,500,000 14,501,450 -14,500,000 +14,501,450 +14,500,000 -14,501,450

EUR

Murabaha 1.40874% 10,000,000 10,140,874 +10,000,000 -10,140,874 -10,000,000 +10,140,874

Spot Rate 1.45 1.43


23/32


Profit Rate Swap(Waad Based)Waad & Musawamah

A Waadis a unilateral undertaking from the Promisor to the Promisee. The Waad is a unilateral promise. It is only binding on the Promisor and not on the Promisee. The Promisor can receive a fee for its undertaking.

The Musawamahis an ordinary contract sale in which the price of a commodity to betraded is negotiated between the seller and the buyer without any reference to theprice paid or cost incurred by the former.

A Musawamah trade between promisor and promisee under the Waad is the

mechanism through which the profit on the promise is paid to the Investor. All other conditions relevant to Murabaha apply to Musawamah.

Structure Mechanics

TheProfit Rate Swap (Waad based)involves two independent Waad promiseswhere, for example:

Crdit Agricole CIB undertakes to the Investor to enter into a series of Musawamahtransactions paying a fixed profit over a defined time period.

The Investor undertakes to Crdit Agricole CIB to enter into a series of Musawamahpaying a floating profit over the same time period.

Economically, through this structure, we aim to replicate the economic benefits of anInterest Rate Swap.

On the start date, Crdit Agricole CIB and the Investor:

enter into the unilateral Waad promises. define the number of Musawamahs to be entered into by each party. agree the mechanics for determining the fixed and floating rate profit payable in

respect of each time period.

On each Musawamah trade date: Crdit Agricole CIB buys spot commodities from the Investor, and pays the full

notional price plus the fixed profit to the Investor.

The Investor buys spot commodities from Crdit Agricole CIB , and pays the fullnotional price plus the floating profit to Crdit Agricole CIB .

As the Musawamah notional amounts are similar, the fixed and floating rate profitpayments are netted off, so that only one cash flow occurs.

Features

There is no exchange of notional involved in these transactions. The only flows rising inthis transaction are the net amounts to be paid by one party to the other at the time ofthe profit payments (Musawamah trade dates).

Crdit Agricole CIB acts as Agent for the Investor and conducts the purchase and saleof the commodities on behalf of the Investor in fulfilling both Waad undertakings.

Commodities trade costs are limited as the Musawamah are intraday transactions,making the Waad based profit rate swap attractive in term of pricing.

This product can be used only for hedging or cost reduction purposes and cannotbe traded for speculative purposes.

The structure has been approved by Crdit Agricole CIB s Sharia Boardcomposed of Sheikh Nizam Yaquby, Dr. Mohammed Elgari andDr. Abdulsattar Abu Ghuddah.

Structured ProfitRate Swap

The Waad based profitrate swap allows CrditAgricole CIB to structureswaps with reference toa profit formula.

Therefore, this structurecan be expanded tocover a range of marketrisks beyond theclassical vanilla swap

(currencies, commodities,indexes etc).

Consequently, CrditAgricole CIB can tailorhedging solutions forthe Investor in order tooffer an extensive rangeof protections.


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Disclaimer:



www.ca-cib.com

Profit Rate Swap

(Waad Based)

Illustration

5 Year USD Profit Rate Swap (Waad Based)

Features:Notional amount: USD 100,000,000

Tenor: 5 years

Fixed rate payer: The Investor

Floating rate payer: Crdit Agricole CIB

Profit payment: Semiannually

Floating rate benchmark: USD 3M Libor

Fixed rate: 5%

Profit Rate Assumptions:

Profit Y1 S1 Y1 S2 Y2 S1 Y2 S2 Y3 S1 Y3 S2 Y4 S1 Y4 S2 Y5 S1 Y5 S2Date Musawamah

1Musawamah

2Musawamah

3Musawamah

4Musawamah

5Musawamah

6Musawamah

7Musawamah

8Musawamah

9Musawamah

10

Fixed Rate 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%

FloatingRate

4.75% 4.90% 5.05% 5.10% 4.95% 5.05% 5% 5.10% 5.15% 5.25%

Sequences:

Dates Musawamah Floating Rate Fixed Rate Floating Amount Fixed Amount Investors Net Amount

Y1 S1 1 4.75% 5% 2,375,000 2,500,000 (125,000)

Y1 S2 2 4.90% 5% 2,450,000 2,500,000 (50,000)

Y2 S1 3 5.05% 5% 2,525,000 2,500,000 25,000

Y2 S2 4 5.10% 5% 2,550,000 2,500,000 50,000Y3 S1 5 4.95% 5% 2,475,000 2,500,000 (25,000)

Y3 S2 6 5.05% 5% 2,525,000 2,500,000 25,000

Y4 S1 7 5.00% 5% 2,500,000 2,500,000 -

Y4 S2 8 5.10% 5% 2,550,000 2,500,000 50,000

Y5 S1 9 5.15% 5% 2,575,000 2,500,000 75,000

Y5 S2 10 5.25% 5% 2,625,000 2,500,000 125,000

The Profit Rate Swap helped the Investor saving USD 120,000 by hedging

the floating rate of its underlying transaction.


25/32


Profit Rate Swap(Murabaha Based)Murabaha

A Murabahais the purchase and sale of Sharia compliant commodities, betweenCrdit Agricole CIB and the Investor, to result in either a deposit or a financing.

In order to achieve a deposit, Crdit Agricole CIB purchases commodities as Agent forthe Investor at spot and sells those commodities to Crdit Agricole CIB on deferredpayment terms (cost price + profit), such deferred profit reflecting the return on thedeposit. Crdit Agricole CIB sells the commodities at spot in order to obtain the cashreflecting the Investors deposit.

The deferred sale price is always higher than the purchase price, reflecting the return onthe deposit, and must be known at the time of the Murabaha transaction.

Structure Mechanics

The Profit Rate Swap (Murabaha Based)is a series of Murabahas paying a fixed profitagainst another series of Murabahas paying a floating profit (benchmarked to a varietyof rates, including but not limited to, Libor, Sibor, etc.).

Economically, through this structure, we aim to replicate the economic effects of aninterest rate swap.

On the start date: The Investor will enter in a series of Murabahas with Crdit Agricole CIB where the

Investor will pay as a profit to Crdit Agricole CIB a fixed amount.

Crdit Agricole CIB will enter in a series of Murabahas with the Investor whereCrdit Agricole CIB will pay as a profit a floating amount (Libor for example) fixedbefore the beginning of each Murabaha.

The tenors of the Murabahas and the Murabaha amounts are similar. On each deferred payment date, Crdit Agricole CIB will receive a fixed profit and

the Investor will receive a floating profit, with the two amounts netted off forpayment purposes.

Features

There is no exchange of notional involved in these transactions. The only flows arisingin this transaction are the net amounts to be paid by one of the parties at the time ofthe profit payments.

Crdit Agricole CIB acts as Agent for the Investor and will conduct the purchase andsale of the commodities on behalf of the Investor.

The commodity trade costs are significant (up to 5 bps per annum), and are borne byCrdit Agricole CIB but are taken into account in the pricing.

This product can be used only for hedging or cost reduction purposes and cannotbe traded for speculative purposes.

The structure has been approved by Crdit Agricole CIBs Sharia Boardcomposed of Sheikh Nizam Yaquby, Dr. Mohammed Elgari and

Dr. Abdulsattar Abu Ghuddah.

Purpose ofProfit Rate Swap

The Profit Rate Swap isa key instrument inmanaging investmentand funding risk.

Any Investor with anoutstanding loan or adeposit linked to afloating rate of returncan eliminate the raterisk by entering into a

profit rate swap andfixing the cost or return.

Company A has$100Mln Islamicfinancing where it paysa profit rate equal toLibor to the Financier.Initial Libor level: 4.50%


Libor rises to 5.50%.After one year, CompanyA will have paid $5.5Mln

as a profit rate insteadof $4.5Mln.$1,000,000 additionalcost

Case 2 Profit Rate swap

protection

Company A enters intoa Profit Rate Swap withCrdit Agricole CIB.Crdit Agricole CIB paysa rate equal to Libor andCompany A pays a rate

of 4.75%. Libor rises to5.50%. Company Apays $4.75Mln andreceives $5.5Mln fromCrdit Agricole CIB.$750,000 saving

Investor

Metals Supplier

Crdit Agricole

CIB Agent

(1) $100

(2) $100 (3) Metals

(4) Metals


Metals Purchaser

(6) $100 (5) Metals

Crdit Agricole

CIB Principal


26/32


Disclaimer:



www.ca-cib.com

Profit Rate Swap(Murabaha Based)

Illustration

5 Year USD Profit Rate Swap (Murabaha Based)

Features:Notional amount: USD 100,000,000Tenor: 5 yearsFixed rate payer: The InvestorFloating rate payer: Crdit Agricole CIBProfit payment: SemiannuallyFloating rate benchmark: USD 3M LiborFixed rate: 5%

Profit Rate Assumptions:

Profit Y1 S1 Y1 S2 Y2 S1 Y2 S2 Y3 S1 Y3 S2 Y4 S1 Y4 S2 Y5 S1 Y5 S2Date Musawamah

1Musawamah

2Musawamah

3Musawamah

4Musawamah

5Musawamah

6Musawamah

7Musawamah

8Musawamah

9Musawamah

10

Fixed Rate 5% 5% 5% 5% 5% 5% 5% 5% 5% 5%

FloatingRate

4.75% 4.90% 5.05% 5.10% 4.95% 5.05% 5% 5.10% 5.15% 5.25%

Sequences:

Dates Musawamah Floating Rate Fixed Rate Floating Amount Fixed Amount Investors Net Amount

Y1 S1 1 4.75% 5% 2,375,000 2,500,000 (125,000)

Y1 S2 2 4.90% 5% 2,450,000 2,500,000 (50,000)

Y2 S1 3 5.05% 5% 2,525,000 2,500,000 25,000

Y2 S2 4 5.10% 5% 2,550,000 2,500,000 50,000

Y3 S1 5 4.95% 5% 2,475,000 2,500,000 (25,000)

Y3 S2 6 5.05% 5% 2,525,000 2,500,000 25,000

Y4 S1 7 5.00% 5% 2,500,000 2,500,000 -

Y4 S2 8 5.10% 5% 2,550,000 2,500,000 50,000

Y5 S1 9 5.15% 5% 2,575,000 2,500,000 75,000

Y5 S2 10 5.25% 5% 2,625,000 2,500,000 125,000

The Profit Rate Swap helped the Investor saving USD 120,000 by hedging

the floating rate of its underlying transaction.


27/32


Cross Currency Swap(Murabaha Based)Murabaha

A Murabahais the purchase and sale of Sharia compliant commodities, betweenCrdit Agricole CIB and the Investor, that result in either a deposit or a loan.

In order to achieve a deposit, Crdit Agricole CIB purchases commodities asAgent for the Investor at spot. Investor sells the commodities to Crdit AgricoleCIB on deferred payment terms (cost price + profit), such profit reflecting thereturn on the deposit. Crdit Agricole CIB then sells the commodities at spot inorder to obtain the cash reflecting the Investors deposit.

Note: The deferred sale price is always higher than the purchase price, reflectingthe return on the deposit, and must be known at the time of the Murabahatransaction.

Structure Mechanics

The Cross Currency Swapinvolves one series of Murabahas in Currency 1paying a floating profit against another series of Murabahas in Currency 2 alsopaying a floating profit.

On the start date:

The Investor enters into the first of a series of Murabahas in Currency 1 withCrdit Agricole CIB where the Investor will pay a floating profit to CrditAgricole CIB.

Crdit Agricole CIB enters into the first of a series of Murabahas in Currency 2with the Investor where Crdit Agricole CIB will pay a floating profit to theInvestor.

The tenors of the Murabahas and the Murabaha amounts are identical.

Consequently, on any deferred payment date, Crdit Agricole CIB will receive a

floating profit in Currency 1 and the Investor will receive a floating profit inCurrency 2.

Features

The transaction is funded and the notional amounts are exchanged on the startdate. At maturity, the notional amounts are returned.

Commodity trading costs are significant (up to 5 bps per annum) and are borneby Crdit Agricole CIB.

This product is only for hedging or cost reduction purposes and cannot betraded for speculative purposes.

The structure has been approved by Crdit Agricole CIBs ShariaBoard composed of Sheikh Nizam Yaquby, Dr. Mohammed Elgari

and Dr. Abdulsattar Abu Ghuddah.

Purposes ofCross Currency Swap

The Cross CurrencySwap is mostly used tomanage currency andrate risks associatedwith investments.

Cross Currency Swapsallow investors who holdCurrency 1 to invest inCurrency 2 for a definedperiod of time to

mitigate currency risk. Company A has $100

cash and wishes toinvest in EUR for oneyear.


Company A converts its$100 on the start date @1.50 and will receive66.66. After one year,Company A is changingback the 66.66. Spot

rate has moved to 1.20,and Company Areceives $80 resulting in$20 loss

Case 2 Cross currency

swap protection

Company A enters intoa cross currency swapwith Crdit Agricole CIBand receives 66.66against $100. After oneyear, Company A

receives back $100(+ $ profit rate) againstthe payment of 66.66(+ profit rate).$0 loss

Investor

Metals Supplier

Crdit Agricole

CIB Agent

(1) $100

(2) $100 (3) Metals

(4) Metals


Metals Purchaser

(6) $100 (5) Metals

Crdit Agricole

CIB Principal


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Disclaimer:



www.ca-cib.com

Cross Currency Swap(Murabaha Based)

Illustration

1.5 Year EUR/USD Cross Currency Swap

Features:Spot rate: EUR/USD: 1.50

Swap notional: USD 100,000,000 / EUR 66,666,666

Tenor: 1.5 years

Currency 1: EUR

Currency 2: USD

Currency 1 rate payer: The Investor

Currency 2 rate payer: Crdit Agricole CIB

Profit payment: Quarterly

Number of Murabahas: 6 (1.5 year/quarter) Profit Rate Assumptions:

Y1 Q1 Y1 Q2 Y1 Q3 Y1 Q4 Y2 Q1 Y2 Q2

Profit Date Murabaha 1 Murabaha 2 Murabaha 3 Murabaha 4 Murabaha 5 Murabaha 6

EUR Rate 4.25% 4.30% 4.35% 4.30% 4.30% 4.25%

USD Rate 4.75% 4.90% 5.05% 5.10% 4.95% 5.05%

Cash Flows:

Y1 Q1 Y1 Q2 Y1 Q3 Y1 Q4 Y2 Q1 Y2 Q2

Profit Date Start Date Murabahas 1 Murabahas 2 Murabahas 3 Murabahas 4 Murabahas 5 Murabahas 6 End Date

EUR Rate 4.25% 4.30% 4.35% 4.30% 4.30% 4.25%

USD Rate 4.75% 4.90% 5.05% 5.10% 4.95% 5.05%

Crdit

Agricole CIB

Cash Flows

( 66,666,666) 708,333 716,667 725,000 716,667 716,667 708,333 66,666,666

Investor

Cash Flows($100,000,000) $1,187,500 $1,225,000 $1,262,500 $1,275,000 $1,237,500 $1,262,500 $100,000,000


29/32


Structured Murabaha DepositMurabaha

AMurabahais the purchase and sale of Sharia compliant commodities, betweenCrdit Agricole CIB and the Investor, to result in either a deposit or a financing.

In order to achieve a deposit, Crdit Agricole CIB purchases commodities asAgent for the Investor at spot and sells those commodities to Crdit Agricole CIBon deferred payment terms, such deferred profit reflecting the return on thedeposit. Crdit Agricole CIB sells the commodities at spot in order to obtain thecash reflecting the Investors deposit.

The deferred sale price is always higher than the purchase price, reflecting thereturn on the deposit, and must be known at the time of the Murabahatransaction.

Structure Mechanics

TheStructured Murabaha Depositis a series of commodity Murabahas andoffers a return linked to the performance of an underlying, according to a pre-agreed formula.

It is intended to replicate the economics of a Structured Deposit.

The 1st Murabaha will pay a fixed profit because the return on the underlying willnot be known until the end of the period. Starting from the 2nd Murabaha untilthe nth Murabaha, each Murabaha will pay as a profit the n -1th underlyingperformance reflecting the return of the previous period.

In respect of each Murabaha transaction, the Investor will receive:

Part of the sale price (profit) on the trade date; and

The balance of the sale price on a deferred basisplease refer to theillustration overleaf.

The last Murabaha will be a short Murabaha (2 or 3 days) where, on the deferredpayment date, the Investor will receive his initial investment plus the profit on theunderlying for the final period

Features

On the start date, the Investor funds the deposit by purchasing commodities andselling them to Crdit Agricole CIB on deferred terms, reflecting a fixed return forthe first reference period, and payable to the Investor at the end of the firstreference period.

For all subsequent Murabaha, the Investor receives as a profit the performanceof the underlying from the previous period.

The profit must be known at the time of the Murabaha transaction.

The capital is guaranteed at maturity only. If the Investor decides to terminate theinvestment before maturity, a loss could be incurred.

The structure has a cost of 2.5bps per annum (commodities brokerage cost)carried by Crdit Agricole CIB i.e. for a 4 year structure, Crdit Agricole CIB willpay 10bps.

The structure and the pay-offs have been approved by Crdit AgricoleCIBs Sharia Board composed of Sheikh Nizam Yaquby,

Dr. Mohammed Elgari and Dr. Abdulsattar Abu Ghuddah.

Benchmarks AvailableUnderlying

Indices

Equities

Commodities

Currencies

Rates Indices (Libor,CMS)

Hybrids (mixture of twounderlying or more)

Calculation types:

Bull: full performance ofthe underlying

Barriers: knock in/out,ranges, wedding cake

Early redemption: call,target

Crdit Agricole CIB canprovide bespoke solutionsby creating benchmarks orasset groups in accordance

with Investor requirements.


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Disclaimer:



www.ca-cib.com

Structured Murabaha

Deposit

Illustration

2 Years Libor Range Accrual

Features:Investment amount: USD 10,000,000

Tenor: 2 years

Underlying: USD 3M Libor

Range: 0-6%

Profit Rate: 1st Murabaha: 3%

Thereafter: 7% x n/N

n/N = number of days of the previous period where USD 3M Libor is

within the range divided by the total number of days of the same period

Profit payment: Quarterly

Profit Rate Assumptions:Profit Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 End Q8Date Murabaha 1 Murabaha 2 Murabaha 3 Murabaha 4 Murabaha 5 Murabaha 6 Murabaha 7 Murabaha 8 Murabaha 9

n/N 90/90 90/90 84/90 64/90 0/90 39/90 90/90 90/90 N/A

Profit Rate 3% 7% 7% 6.5% 5% 0% 3% 7% 5.15%

Sequences (for the Investor):

Legend: Flows on the Trade Date Flows on the Deferred Payment Date

Sale Price

Dates Murabaha # Annualized return Purchase Price Profit Cost Price

D0-D90 1 (90 days) 3% - 10,000,000 + 75,000 + 10,000,000

D90-D180 2 (90 days) 7% - 10,000,000 + 175,000 + 10,000,000D180-D270 3 (90 days) 7% - 10,000,000 + 175,000 + 10,000,000

D270-D360 4 (90 days) 6.5% - 10,000,000 + 162,500 + 10,000,000

D360-D450 5 (90 days) 5% - 10,000,000 + 125,000 + 10,000,000

D450-D540 6 (90 days) 0% - 10,000,000 - + 10,000,000

D540-630 7 (90 days) 3% - 10,000,000 + 75,000 + 10,000,000

D630-D720 8 (90 days) 7% - 10,000,000 + 175,000 + 10,000,000

D720-D723 9 (2/3 days) 7% - 10,000,000 + 75,000 + 10,000,000

There will be no movement of principal between the Investor and Crdit Agricole CIB except on D0 and D723

deferred payment date of the nth Murabaha = n+1th Murabaha trade date


31/32


Structured Waad(Islamic Structured Option)Waad & Musawamah

A Waad is a unilateral undertaking from the Promisor to the Promisee. The Waad is a unilateral promise.

It is only binding on the Promisor and not on the Promisee. The Promisor can receive a fee for its undertaking. The Musawamahis an ordinary contract sale in which the price of a commodity

to be traded is negotiated between the seller and the buyer without any referenceto the price paid or cost incurred by the former.

A Musawamah trade between promisor and promisee under the Waad is themechanism through which the profit on the promise is paid to the Investor.

All other conditions relevant to Murabaha apply to Musawamah.

Structure Mechanics

The Structured Waadis a promise from Crdit Agricole CIB to an InvestorwhereCrdit Agricole CIB undertakes to enter into a series of Musawamahs in order topay a benchmark return to the Investor.

This profit will always be equal to the performance of the underlying benchmark. On the start date, Crdit Agricole CIB undertakes to the Investor to enter into a

defined number of Musawamah transactions based on an agreed profit formula.

On every Musawamah trade date, the Investor and Crdit Agricole CIB enter intoa Musawamah transaction where Crdit Agricole CIB purchases commodities

from the Investor at a price equal to the cost price of the commodities plus aprofit (equal to the underlying performance).

All the Musawamah flows are intraday, with no deferred payment.

Features

Crdit Agricole CIB is entitled, on the start date, to a non-refundable fee from theInvestor for giving its Waad.

The Musawamahs (purchase and sale of the commodities) are intradaytransactions with no deferred payment.

In respect of all Musawamahs, the Investor receives as a profit the performanceof the underlying for a defined period.

The benchmark return, and hence the profit, will be known at the time of eachMusawamah transaction.

There is no capital guarantee given by Crdit Agricole CIB. Any profit on theMusawamah depends on the underlying performance.

The structure has a limited cost of commodities brokerage, to be borne by CrditAgricole CIB, as all transactions are intraday.

The Investor does not have to fund the Musawamah. All funding is provided byCrdit Agricole CIB.

The structure has been approved by Crdit Agricole CIBs Sharia Boardcomposed of Sheikh Nizam Yaquby, Dr. Mohammed Elgari andDr. Abdulsattar Abu Ghuddah.

Benchmarks AvailableUnderlying

Indices

Equities

Commodities

Currencies

Rates Indices (Libor,CMS)

Hybrids (mixture of twounderlying or more)

Calculation types:

Bull: full performance ofthe underlying

Barriers: knock in/out,ranges, wedding cake

Early redemption: call,target

Crdit Agricole CIB canprovide bespoke solutionsby creating benchmarks orasset groups in accordance

with Investor requirements.


32/32


Disclaimer:


Crdit Agricole Corporate and Investment Bank, DIFC Branch is authorized by the Dubai Financial Services Authority. CrditAgricole Corporate and Investment Bank is incorporated in France and registered in England & Wales. Registration number:FC008194 Registered office: Broadwalk House 5 Appold Street London EC2A 2DA

Structured Waad(Islamic Structured Option)

The Structured Waad is a very convenient structure that provides the opportunity to white label capital guaranteed investmentproducts to clients. The Investor receives the investment amount from his client and places with Crdit Agricole CIB:- the equivalent of a zero-coupon amount in a Murabaha Deposit in order to guarantee the investment at maturity

- the balance amount in purchasing a Structured Waad from Crdit Agricole CIB

$100

Structured WaadX $

Zero-couponMurabaha

Illustration

5 Years EUR/USD Structured Waad

Features:Notional amount: USD 10,000,000Tenor: 5 yearsUnderlying: EUR/USD SpotProfit rate: 100% of the annual positive performance of EUR/USDProfit payment: AnnuallyUndertaking fee: 6% of the notional amountPromisor: Crdit Agricole CIBPromisee: The Investor

Profit Rate Assumptions (based on the EUR/USD annual performance):

Profit Date Y1 Y1 Y3 Y4 Y5Musawamah 1 Musawamah 2 Musawamah 3 Musawamah 4 Musawamah 5

Profit Rate 12% -5% 7% 2% 5%

Sequences:Sale Price

Dates Musawamah # Annualized return Purchase Price Profit Cost Price

Year 1 1 12% - 10,000,000 +1,200,000 + 10,000,000

Year 2 2 -5%If there is no profit payable, the Investor and Crdit Agricole CIB

will enter into a trade with no profit to be paid

Year 3 3 7% - 10,000,000 + 700,000 + 10,000,000

Year 4 4 2% - 10,000,000 + 200,000 + 10,000,000

Year 5 5 5% - 10,000,000 + 500,000 + 10,000,000

On every profit payment date, the Investor receives the underlying performance from Crdit Agricole CIB and passes it to his client.At maturity, the Investor is receiving $100 back form the Murabaha Deposit that he can return to his client.

islamic banking brochure 2012 eng

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