Baku: ABB Bank has successfully completed its inaugural Islamic banking transaction, marking a significant milestone in its financial offerings. The transaction, which involved the utilization of the Murabaha financing mechanism, was conducted with Novco Group, the first partner to engage with this innovative product.

According to Azerbaijan State News Agency, Murabaha is a financial instrument aligned with Islamic finance principles, allowing entrepreneurs to finance the acquisition of goods or assets through the Bank. In this model, ABB Bank purchases the required item on behalf of the customer and subsequently sells it to the customer at a pre-determined price. This agreed price, along with payment terms, remains fixed, ensuring the Bank's income through a trade markup established in advance with the customer.

ABB Bank has made the Murabaha product accessible to all legal entities and individual entrepreneurs. The financing options range from a minimum of AZN 100,000 to a maximum of AZN 5 million, or their equivalents in other currencies. Customers can choose a financing term from one to three years, providing flexibility to fit various business needs.

For further information regarding ABB Bank's comprehensive range of products and services, interested parties can visit the Bank's branches and service offices. Additional details are available on the official website at https://abb-bank.az/, through the Information Centre by calling 937, or on the Bank's official corporate social media platforms.