0% found this document useful (0 votes)
33 views15 pages

Documents of Islamic Financing Facility For Renewable Energy

Download as pdf or txt
Download as pdf or txt
Download as pdf or txt
You are on page 1/ 15

Annexure II of IH&SMEFD Circular No.

12 of 2019

Documents of
Islamic Financing Facility for
Renewable Energy
IFRE: 1
MASTER MUDARABAH AGREEMENT
BETWEEN STATE BANK OF PAKISTAN AND (NAME OF PIFI)
under Islamic Financing Facility for Renewable Energy
(To be stamped as an agreement in accordance with the law in force in each province)

THIS AGREEMENT FOR INVESTMENT ON MUDARABAH BASIS


is made on the __________day of _________20__

Between

[Name of the PIFI] _____________________________________, having its place of business


at _______________________________ hereinafter referred to as the PIFI (which expression
shall, where the context admits, mean and include its successors in interest and assigns)
acting as Mudarib of the ONE PART;

And

State Bank of Pakistan (SBP), incorporated under the State Bank of Pakistan Act, 1956,having
its Registered Office at I.I. Chundrigar Road, Karachi, hereinafter referred to as SBP, (which
expression shall, where the context admits, mean and include its successors in interest and
assigns) acting as Rab-ul-Maal of the OTHER PART.

In consideration of SBP agreeing to provide Mudarabah investment under Section 17 (6B) of


State Bank of Pakistan Act, 1956, not exceeding Rs._________________ (Rupees
_____________________________ only) under State Bank of Pakistan’s Islamic Financing
Facility for Renewable Energy, as may be amended from time to time (the ‘Facility’) in the
general pool of assets of PIFI (referred to hereinafter as the ‘Pool’) for __________ years vide
Letter No._______________________________________ dated __________ .

Now, both the parties to this agreement do hereby agree to the terms and conditions as set
out herein under:-

1) The maximum amount of Mudarabah investment that SBP shall provide to the PIFI in
the case of each customer financed by the PIFI would be in line with the provisions of
the facility and will not exceed the financing amount actually disbursed by the PIFI
under the Facility.

2) The PIFI undertakes that it shall not seek Mudarabah investment from SBP in terms of
this agreement unless it is satisfied that all parties liable there under are financially
sound and credit worthy.

1 of 6
State Bank of Pakistan

3) Any demand to be made by SBP under the agreement for tendering the documents
prescribed under this agreement shall be sufficiently made if it is made in writing and
addressed and sent by post or otherwise to the PIFI’s Head Office or its branch.

4) The PIFI shall neither sanction nor permit any of its customers to use the finances for
any purpose other than those prescribed under the Facility. Further, the PIFI will
obtain a declaration from customers to the effect that he/she/they shall not utilize
the finances or any part thereof except for the purpose spelt out in the Facility and
that she/she/they would promptly furnish, at their expense, such information, in such
form and at such time as the PIFI or SBP may demand from time to time.

5) No financial assistance shall be given by PIFI to any of its Directors or to any company,
firm or group or association or project in which any of its Director is interested either
directly or indirectly except in financial assistance against tangible security which will
be provided with the approval of the majority of its Directors, excluding the Director
concerned.

Investment Maturity/Redemption:

6) At maturity(ies) the PIFI shall redeem SBP’s share in the general pool by purchasing
SBP’s proportionate share in the general pool as per redemption / repayment
schedule, after taking into consideration profit and loss, as the case may be.

7) The PIFI expressly agrees that SBP is entitled to redeem or advance the date of
redemption for Mudarabah investment (as per “Instructions for Profit & Loss
Distribution and Pool Management for Islamic banking Institutions (IBIs)” issued vide
IBD Circular No.3 dated November 19, 2012, as amended from time to time, for
profit/loss arising from the general pool) under this agreement at any time and for any
reasons without any prior notice. Further, SBP can also cancel/alter the financing limit
allocated to PIFI under the facility.

8) SBP is not obliged to invest in a PIFI any time and for any reason against this facility.

9) The PIFI also expressly agrees that SBP has the right to vary, amend, alter or add to
the terms and conditions of the facility without any reference to the PIFI who agrees
to invariably comply with the same. The PIFI shall also have the right to withdraw from
the facility and redeem SBP’s outstanding Mudarabah investment (after taking into
consideration “Instructions for Profit & Loss Distribution and Pool Management for
Islamic banking Institutions (IBIs)” issued vide IBD Circular No.3 dated November 19,

2 of 6
State Bank of Pakistan

2012, as amended from time to time, for profit/loss arising from the general pool)
uptill such date, if it does not agree to the amendments made by SBP.

10) The PIFI agrees that on delay of payment by the PIFI on any date agreed, SBP has the
authority to debit without further reference to the PIFI, all of its accounts now held or
held hereafter or adjust any amounts which may, howsoever, become due from SBP
or come into SBP’s possession or control to the extent of SBP’s Mudarabah investment
(after taking into consideration “Instructions for Profit & Loss Distribution and Pool
Management for Islamic banking Institutions (IBIs)” issued vide IBD Circular No.3
dated November 19, 2012, as amended from time to time, for profit/loss arising from
the general pool).

Profit Payments:

11) The PIFI agrees that all income of general pool of assets shall be applied in deriving
the profit to the Mudarabah participants in the general pool including SBP and that
the profit allocation would be according to “Instructions for Profit & Loss Distribution
and Pool Management for Islamic banking Institutions (IBIs)” issued vide IBD Circular
No.3 dated November 19, 2012, as amended from time to time. The PIFI shall hold
SBP’s share in profit separately for and on SBP’s behalf.

12) The PIFI will make payment of profit of the SBP’s share in the profit of the pool, as per
Profit Sharing Ratio (PSR) and weightage fixed at the beginning of each month based
on the SBP’s expected rate of return on this facility. At the end of each month, but not
later than the 7th working day of the following month, the profitability from the pool
shall be determined on the basis of the un-audited accounts of the pool, and
distributed between the PIFI and depositors (alongwith SBP) according to the pre-
announced Profit Sharing Ratio (PSR) and weightages, in line with “Instructions for
Profit & Loss Distribution and Pool Management for Islamic banking Institutions (IBIs)”
issued vide IBD Circular No.3 dated November 19, 2012, as amended from time to
time.

13) Profit shall be calculated and assigned to the SBP on monthly basis however, the same
will be payable on quarterly basis, within 7 working days of completion of each
calendar quarter or on maturity/redemption of the investment, whichever is earlier.
Where the above schedule date falls on a public/weekly holiday the PIBI shall make
payment of the due amount of profit on next working day after such due date. The
monthly profits assigned to SBP but not distributed till the calendar quarter shall be
kept in a non-remunerative account by PIFI on behalf of SBP; and will be made part of
general pool with zero weightage.

3 of 6
State Bank of Pakistan

14) The PIFI will be responsible for any loss incurred to SBP under this facility, if the said
loss is subsequently proven to have been caused on account of negligence/mis-
statement and/or misrepresentation, on the part of PIFI, determined by internal
auditor, external auditor and/or SBP inspection team.

Islamic Financing Facility for Renewable Energy – Reserve Fund – (RF-IFRE):

15) SBP shall create a Reserve Fund (RF) at SBP-BSC from its share in profits of the scheme.
If in quarter SBP’s share in profit is more than the expected return; such excess profits
shall be transferred to the RF-IFRE. The PIFI shall advise the SBP-BSC office accordingly,
within 7 working days of close of quarter, by issuing separate advices for transfer of
excess amount into ‘IFRE Reserve Fund’. If any profits in the subsequent quarter(s) are
less than the desired returns, the shortfall in the profit may be made good by
withdrawing from the amount lying in the RF-IFRE by SBP.

16) If, upon annual audit, SBP’s share of profit is found to be less than the expected rate,
such deficit amount shall be fulfilled by withdrawing from the amount in the RF-IFRE.

17) If at any time, the general pool of the PIFI suffers a net loss, it shall be borne by all the
participants of the general pool, including SBP, to the extent of their respective ratios
of investments in the general pool. SBP shall meet its share of the loss from the RF-
IFRE first, and where RF-IFRE is insufficient, SBP will absorb its remaining share of loss.

18) The PIFI will be responsible for any loss incurred to SBP under this facility, if the said
loss is subsequently proven to have been caused on account of negligence/mis-
statement and/or misrepresentation, on the part of PIFI, determined by internal
auditor, external auditor and/or SBP inspection team.

Documentation, Security & Charge:

19) PIFI agrees and undertakes that the PIFI shall at all times execute or maintain separate
legal documentation and records including but not limited to letters of credits/inland
letters of credit, security documents, notes, indemnity bonds, agreements etc.,
including the assignment deed of securities held by the PIFI or which may be obtained
by the PIFI from its customers subsequently, as are adequate to safeguard the PIFI’s
interest against the finances for which this agreement has been executed. The PIFI
also agrees and undertakes to keep all such documents in trust for a reasonable
period. The PIFI further agrees that SBP or any official authorized by SBP shall have
the right of inspection of the PIFI’s records and documents for which Mudarabah
investment has been made by SBP. SBP shall have the right to seek and obtain full

4 of 6
State Bank of Pakistan

assistance and cooperation from the PIFI for discharging SBP’s duties and performing
SBP’s functions.

20) The PIFI agrees to hold the securities/security documents now held or which may be
held by it as security for finance given to the customer as trust on behalf of the general
pool by way of security for due redemption thereof and the PIFI undertakes to deal
with the same as SBP (as regulator) may direct. The PIFI further agrees that if and
when it realizes these securities or any part of it, it shall pay to the participants of the
general pool, from all such realizations, in proportion to their share. Pending such
payment, PIFI shall hold the same for and on behalf of the general pool.

21) The PIFI shall submit to SBP copies of the Demand Promissory Notes executed in the
PIFI’s favour by its customers, under this agreement with a certificate that (i) the same
arises out of bonafide finances provided by the PIFI under the facility (ii) all parties
liable there under are financially sound, solvent and credit-worthy and that by virtue
of such endorsement and delivery, the PIFI certifies the genuineness of signatures as
well as authority of all persons thereon (iii) the finances provided to parties liable have
not been classified as doubtful/loss.

22) In addition to clause (20), the PIFI shall hold upon trust securities/security documents
presently held by it or which may be obtained by it from its customers to whom
finance is made available under this facility, as security for due payment of finance
with return/profit/rent thereon. Further, on SBP’s (as a regulator) demand, the PIFI
undertakes to assign to SBP all such securities and secured documents, and agrees
that upon such assignment the provisions of clause (20) shall, mutatis mutandis, apply.

23) In addition to the preceding clauses, the PIFI agrees that as and when SBP demands,
it shall create valid legal charge on any or all of its assets as may be demanded by SBP
for payment of any amount that is due under this agreement.

24) The PIFI agrees that notwithstanding anything contained elsewhere in this agreement,
if the PIFI commits breach of any of the terms and conditions of this agreement SBP
shall have a right to immediately redeem SBP’s outstanding Mudarabah investment
and profit (in accordance with “Instructions for Profit & Loss Distribution and Pool
Management for Islamic banking Institutions (IBIs)” issued vide IBD Circular No.3
dated November 19, 2012, as amended from time to time ) up till such date.

25) No indulgence or delay in exercising any of SBP’s rights hereunder shall be deemed a
waiver of any right and no waiver of any of SBP’s right hereunder shall be construed
as a waiver of any other rights you may have.

5 of 6
State Bank of Pakistan

_____________________________________ __________________________________
PIFI’s Authorized Signatory State Bank of Pakistan’s Authorized
(with name and designation) Signatory (with name and designation)

Witnesses:

1. ________________
________________

2. ________________
________________

6 of 6
IFRE - 2
MUDARABAH INVESTMENT REQUEST FORM
Under Islamic Financing Facility for Renewable Energy
(TO BE SUBMITTED BY THE PARTICIPATING ISLAMIC FINANCIAL INSTITUTIONS (PIFI))

The Chief Manager,


SBP Banking Service Corporation (SBP BSC),
______________ (City)

Dear Sir,
INFORMATION MEMORANDUM & REQUEST FOR MUDARABAH INVESTMENT

With reference to letter No. ________________ dated _________________ issued by the


(Name of Department) of State Bank of Pakistan (SBP) conveying the availability of funds under
the facility; we (Name of PIFI) submit herewith details of disbursement made as per terms &
conditions of the facility and request SBP for Mudarabah investment facility upto the amount
already disbursed by us as on ___(date ) equivalent to Rs. ____(current application)
(Rupees in words)____ only. The particulars of our above referred financing are given hereunder:

(Name of scheme & reference of Circular


(i) Facility sanctioned under
No. and date)
(ii) Name of the customer/sponsor(s) and
__________________________________
name of project
(iii) Business address of the customer/
__________________________________
sponsor of the project
(iv) Location / address of the Project __________________________________
financed
(v) Type & size of Renewable Energy
Technology for which facility(ies) have __________________________________
been sanctioned
Amount ________________
(vi) Particulars of finance as per financing
Date of execution ______________
agreement executed with the customer
Rate of profit _________________
(vii) Period for which finance has been
__________________________________
sanctioned
(viii) Category of the Scheme under which
__________________________________
loan is sanctioned
(ix) Mode of financing __________________________________
1 of 4
State Bank of Pakistan

(x) Name and address of ultimate owner /


__________________________________
user (for Category III only)
(xi) Purpose of the financing __________________________________

2. We certify that the details of the financing arrangements made with the above named
Customer and the financing made by us to them against the above mentioned contract /
arrangement has been placed in our record and shall be invariably provided to the inspection
team(s) of SBP during inspection.

3) We hereby further certify that:-

i. the terms & conditions as stipulated in the captioned Facility have been complied with;

ii. all the requirements of the Facility including those at point (iii) & (iv) below have been
fully met;

iii. the eligibility of customers and the terms of the Facility have been properly determined
by us in accordance with the prescribed criteria / conditions set out in the Facility in force
on the date of the Agreement/ undertaking as required under the facility;

iv. the existing financing of the customer from our bank as well as other banks and DFIs (both
conventional and Islamic) under IFRE and SBP Facility for Renewable Energy has been
determined and ascertained that the customer shall not, with this financing, breach
financing limit prescribed under the Scheme (as amended from time to time).

4. We request you to provide Mudarabah investment of Rs. (Rupees only) being


equivalent to the amount so far disbursed out of our whole financing of the above
referred amount and credit our current account with you.

5. We understand that the SBP has the right to appoint independent consultants to verify
cases of Mudarabah investment and agree to reimburse the cost so incurred in case the
report of consultants indicates any irregularities on our part. We also agree to pay back
any amount of Mudarabah investment provided to us by the SBP on the basis of this
application if the SBP subsequently concludes that such Mudarabah investment was
wrongfully claimed and also to immediately pay fine on such investment @ paisa 60 per
day per Rs. 1,000 or part thereof, or such other rate as may be announced by the SBP
from time to time, for the period for which such investment was availed by us.

6. We also undertake that in case irregularities are found to have been committed by the
customer due to negligence of our officials/staff to ensure compliance of the same or that

2 of 4
State Bank of Pakistan

such irregularities have been made by the customer with the involvement of our
staff/officer(s), besides taking appropriate action against our staff under our staff
regulations or code of conduct, we shall indemnify and agree to indemnify and save
harmless the SBP against any action, cost, loss and expense that it may incur due to
litigation or otherwise on account of recovery of amount of Mudarabah investment and
the fine thereof for availing of Mudarabah investment to which we/the customer were
not entitled otherwise.

7. The PIFI agrees that notwithstanding anything contained elsewhere in this agreement, if
the PIFI commits breach of any of the terms and conditions of this agreement SBP shall
have a right to immediately redeem SBP’s outstanding Mudarabah investment and profit
amount earned (after taking into consideration any loss arising) up till such date.

Yours faithfully,

___________________ ___________________
(Authorized Signature with (Authorized Signature with
name and designation) name and designation)

DOCUMENTS TO BE ENCLOSED WITH THE REQUEST:

a. IFRE: 3 – Debit Authority


b. IFRE: 4 – Copy of Demand Promissory Note (by the customer)
c. IFRE: 5 – Undertaking to be Submitted by the customer
d. Copy of Internal Audit’s certificate obtained in terms of Section 1.11.1 (ii) of the Scheme.
e. Copy of Financing Agreement between PIFI and customer.
f. Schedule of redemption/ retirement of financial obligation by the customer to the
financing bank
g. In case of category III:
i. Copy of Contract between vendor / supplier and the ultimate owner/user along with
schedule of payment.
ii. In case of lease, proof of supplier / vendor to have received Token Money of not less
than 20% of total installation price from the ultimate owner/user.
iii. In case of energy sale agreement, confirmation of security deposit by ultimate owner/
user equivalent to expected average three months electricity bill in an investment
account in the PIFI.
iv. Copy of undertaking of ultimate owner/user to route his payments of lease rentals /
energy bills through the PFI.

3 of 4
State Bank of Pakistan

v. Copy of tripartite agreement creating security charge of PIFI on the RE equipment


installed.
vi. Copies of approvals of all relevant government departments / agencies, including
issuance of license by NEPRA, approval / no objection of relevant distribution
company.
vii. Summary of previously availed disbursements and cushion available within
consolidated financing limit (in line with requirements as specified under Section 1.6.1
(viii) of the Scheme).
h. Any other document(s), advised by SBP, from time to time

Note: Mudarabah Investment made by SBP shall constitute as acceptance and acknowledgement
on its behalf.

4 of 4
(On the Letterhead of the issuing PIFI)
IFRE - 3

Debit Authority

In consideration of the State Bank of Pakistan having deposited/invested in (Name of the PIFI)
the sum of Rs. (Rupees only) under the Islamic Financing
Facility for Renewable Energy, 2019, we hereby authorize SBP to debit our current account being
maintained with SBP BSC, _________ (City) for any amount due, as per the rules of Mudarabah,
under the schedule1.

This authority is irrevocable and effective from (date) and will remain valid and in force till
the time it is released in writing by SBP.

For & on behalf of (Name of the PIFI):

_____Authorised Signatory_____________

1
Schedule of redemption to be attached with this debit authority(s)

1 of 1
IFRE- 4

DEMAND PROMISSORY NOTE


(To be submitted by the PIFI’s Customer )
(To be stamped in accordance with the law in force in respective Province)

Place: _______________
Date _______________

Rs. _______________

On demand we (Name of Customer / sponsor of the project) promise to pay to


(Name of the PIFI) or order the sum of Rs. / - (Rupees only)
for value of financing received plus the profit / rental / return accruing to (Name of the
PIFI) in respect of financing made available to us and fine, if any, as laid down by the State
Bank of Pakistan under its Islamic Financing Facility for Renewable Energy.

(Authorized signature of the Customer)

(Name & Seal)

Note: - Demand Promissory Note required to be endorsed by the PIFI concerned in favour of its
head office/principal office through which Mudarabah investment is being claimed.

Witnesses:

1. ________________
________________

2. ________________
________________

1 of 1
IFRE - 5

UNDERTAKING TO BE SUBMITTED BY THE CUSTOMER


Islamic Financing Facility for Renewable Energy
(to be stamped in accordance with the law in force in each province)

(Place)_____________
Date ______________
The Manager,
____________________ Bank Limited/DFI,
____________________ Branch,
____________________ (CITY)

Dear Sir,

I/We do hereby certify and confirm that a finance of Rs. ______________________ (Rupees
__________________________only) has been allowed to me/us by you under Islamic Financing
Facility for Renewable Energy of State Bank of Pakistan on the basis of (Islamic Modes of
Financing) , it being understood that return/profit to be derived by the PIFI shall not exceed
______% when converted into annual percentage terms:-

2. I/We, further confirm and undertake that the aforesaid finance will be/has been obtained
by me/us for setting up of Renewable Energy Power Projects as per the provisions of the Facility
under reference. Further, I/We confirm that aforesaid finance, or any part thereof, shall not be
utilized except for the purpose spelt out in the Facility.

3. I/We, do certify that the finance is being obtained by me/us against bonafide transaction
and I/We submit the requisite documents along-with this application for your consideration of
extension of finance facility to me/us from your PIFI under Islamic Financing Facility for
Renewable Energy of State Bank of Pakistan.

4. I/We, do hereby confirm that, with aforesaid finance availed/ being availed, I/we shall not
breach the maximum customer limit prescribed under IFRE, whether availed/ being under SBP
Financing Facility for Renewable Energy and/ or IFRE.

5. I/We, hereby confirm and agree that in the event of my/our failure to make payment on
due date, you have our Irrevocable Authority without reference to us, to recover from me/us and
debit my/our Account No. _______________________ maintained with you along-with charity if
1 of 2
State Bank of Pakistan

any as prescribed under the facility. I/We authorize you to recover the fine amount even if I/we
have made a representation to SBP against imposition of fine under the facility.

6. I/We agree and understand that in the event that either SBP or PIFI avail their right of
withdrawal from the facility for any reasons, all financing made as per the terms of the facility
shall convert to mutually agreed regular terms and conditions of the concerned PIFI and in case
of no agreement this will constitute an event of termination.

7. I/We agree that notwithstanding anything contained elsewhere in this undertaking, the
amount of this finance along-with profit/rental/return due thereon due to you will become due
and payable immediately, if I/we commit breach of any of the terms and conditions hereof.

Yours faithfully,

_________________________
Authorized Signature of the Customer

______________________________

Signature verified by the authorized


Officials of Branch of PIFI
Witnesses:

1. ________________
________________

2. ________________
________________

2 of 2

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy