Trade finance is defined as a specific area of finance that examines underlying international trade transactions. Islamic trade finance consists of providing Shariah – compliant export and import financing tools. These are financial solutions and guarantees which facilitate transactions between buyers and sellers of goods and services. Islamic trade finance arrangements are available in the market to facilitate pre- and post – shipping trade and to provide working capital to mitigate the risks of trading stakeholders. The most used Islamic trade finance instruments are Murabahah, Musharakah, Wakalah and Kafalah.

International IFPA has opportunity to offer streamline the trade financing process by confirming letters of credit to eliminate the need for using intermediary banks. The aim of that to reduce trade costs by removing intermediaries that re-sell goods at higher prices, thus allowing importers to find a better price for their goods across all OIC member states.

STF is alternative mean of providing trade financing facility. Structured trade financing is primary based on performance risk and hence it is particularly well suited for companies doing business in what are considered higher risk markets and industries (emerging markets) or other companies trying to control their leverage level by applying for an off-balance sheet financing.

The most common methods of direct financing are Murabahah Sales contract, Leasing, Istisna’a, and Musharakah.

Collateral management is a mean of securing physical commodities (subject of a loan / financing) that are taken under safe custody of a third party on behalf of the financier.

International IFPA supports its members in finding sponsor to fund projects that are aimed at creating competition, entrepreneurship, employment opportunities and export potential. We also bring additional resources to projects, encouraging the development of Islamic finance, attracting co-financiers and advising governments and private sector groups on how to establish, develop and modernize private enterprises and capital markets.

Lines of Financing are extended to promote the growth and development of the private sector and promote Islamic finance or other purposes authorized by our partner’ (ICD) Articles of Agreement and Investment Policies. Line of Financing is an arrangement through which International IFPA and its members extends medium-long term financing facilities to Financial Institutions (FI) with the purpose of supporting private sector enterprises operating in OIC member countries.

Mission of Asset Management Department (AMD) is to structure, step up, launch and manage funds via Special Purpose Vehicles categorized according to the portfolio’s respective domains, mainly Income and Capital Market and SME & Private Equity.

International IFPA delivers assistance in finding a sponsor or an anchor investor along with other key investors to develop private equity funds as well as other special purpose vehicles. Together with our partners we aim to be among the cornerstone partner for our members in search of investors and play the role of a catalyst for the success of the funds.

We have among OIC partner’s institutions a dedicated team focused on advising Governments and Corporations in our member countries on Sukuk (Sharia-compliant bonds) issuances. This team is driven by the conviction that Sukuk is appealing to OIC member countries because it offers an alternative source of capital and diversifies the country’s investor base.

Credit Insurance Solutions allows to protect balance sheet against non-payment of export receivables. It enhances competitiveness and increases international sales by offering flexible payment terms to overseas customers. Moreover, this tool offers to customers open account credit terms while protecting the insured against credit risk. and helps access working capital facilities from banks by assigning the insurance policy to the banks as security.

Investment Insurance Solutions allows to facilitate access to finance, protect balance sheet against losses due to non-commercial risks, attract additional project capital, enable to penetrate high-risk markets, and reduce cost of funding.