1. What is Ijara "Islamic Leasing"?

Ijara or leasing is probably one of the fastest growing activities of Islamic financial institutions. The principle is becoming well known and is virtually identical to conventional leasing: the Fund leases an asset to a third party in exchange for a specified rent. The asset remains the property of the lessor, thus, at the end of the term, the Fund can sell the asset.

2. What is the Islamic Ijara Fund IV ?

The Islamic Ijara Fund IV (the "Fund") is an unincorporated investment fund through which Kuwaiti nationals and Kuwait-resident expatriates (excluding U.S. and U.K. persons) can participate in the benefits of the Wafra adjustable Yield Ijara Fund SPC ("WAIIF"), an Islamic investment company incorporated in the Cayman Islands and managed by Wafra Capital Partners L.P ("Wafra"). WAIIF is a 5-year closed-ended investment vehicle (including a 6-month investment period) that seeks to provide investors with reliable and attractive monthly returns. WAIIF offers investors floating yield distributions and invests selectively in Ijara transactions that satisfy the requirements of the Islamic Shariah.

3. What are the benefits of this Fund to investors?

• Attractive flow of monthly income
• Compliance with Shariah principles 
• Leasing transactions mainly with "Fortune 1000" companies in the United States
• A carefully selected and managed portfolio of high quality leases

4.  How do Ijara funds work?

A number of unrelated investors club together and place their money in a pool - the Fund. The total amount is then managed by a fund manager and invested according to the respective investment policy in various leasing transactions.

5. Where will the Fund assets be invested?

For the first 6 months, the Fund's assets will be invested in Murabaha transactions or used to purchase Ijara equipment transactions to build the portfolio. From the 7th month up to 48th months, assets will be invested in Ijara transactions mainly to Fortune 1000 companies in the United States.

6. What is the return during the Investment Period?

On each Payment Date during the Investment Period, the Fund will make a payment to the Investors representing 50% of the lease profits in addition to an amount equal to the six-month Murabaha yield of the Distributor (as quoted on the Closing Date) calculated on the Principal whether or not the amounts representing the Principal have been invested in lease transactions.

7. What is the return after the Investment Period?

Monthly income after the end of the 6-month Investment Period (starting on the 7th month). Capital is expected to be distributed at maturity at the end of the fifty-four (54) months from the end of the Investment Period (i.e., sixty (60) months from the end of the Offering Period) however, there are no guarantees that all the initial capital will be paid back at maturity. The Original Rate will be based on a varying rate to be fixed initially at the end of the Investment Period, for one year, at the rate of comparable 5-year US Treasury Note +3.00% p.a.. Thereafter, the yield will be changing, the second year rate being higher than the original Rate. The third year rate might be more or less that the second year rate. The 5-year US Treasury Note rate will be calculated as the monthly average Treasury rate of the 6 months Investment Period. The Original Rate will be reviewed at its annual anniversary and may fluctuate up or down in accordance with market conditions. The Original Rate will increase or decrease by 30% of any such annual change in comparable Treasury Notes calculated on the principal amounts repaid by sublessees, but it can never decrease below its starting point. The original yield will not be less than 7% per annum.

8. What is the minimum amount that can be invested? Is there a maximum amount?

The minimum amount one can invest is US$ 250,000 with multiples of US$10,000. The maximum fund size is $25 million.

9. How does one invest in this Fund?

• Visit your NBK branch to collect a copy of the necessary materials including the Prospectus, the Brochure and the Fact Sheet
• Carefully read the terms and conditions of the Fund
• Complete and sign the Subscription Form and hand it to your Relationship Manager at your NBK branch
• After the close of the Offering Period, all investors will receive a confirmation notice of their investments in the Fund detailing their account information, investment amount and number of units
• Investors will also receive semi-annual account statements and quarterly performance reports for their investments in the Fund

10. Is it possible to redeem my investment before the Fund matures?

No. Capital is expected to be distributed at maturity of the Fund.