Markets and Securities Services

Citi's Markets and Securities Services business provides world-class financial products and services as diverse as the needs of the thousands of corporations, institutions, governments and investors that Citi serves. Citi Islamic has developed a comprehensive range of innovative investment, financing, and risk management solutions for clients seeking to comply with the principles of Sharia, whilst preserving the economics associated with conventional financial transactions.

Investment Solutions

Citi’s Oasis Certificate Programme has the ability to offer clients a packaged Sharia-compliant security which mirrors the economics of a variety of conventional notes and warrants. The asset mix which Oasis holds gives exposures to several benchmark asset classes, including Equities, Commodities, FX, Rates, and Alternatives. All assets are in compliance with Sharia, as are all additional agreements that Oasis enters into.

Distinctive features of our Oasis Certificate Programme:

  • Independent Oversight: all of the products are subject to the oversight and approval of Citi’s Sharia Supervisory Board.
  • Operation ease: Instruments are issued as securities. This means that clients may simply purchase the security in a similar fashion to equities and Sukuk, without the need for bilateral documentation.
  • Breadth of Product Offering: Investment products may be linked to a wide variety of asset classes and issued in principal protected or non-principal protected formats.

Collateralized Murabaha(Islamic Repo)

Citi offers clients with Multicurrency Murabaha financing collateralized by liquid and readily marketable Sharia-compliant securities, such as Sukuk under a deferred payment basis. Financing tenors can be upto 5 years. Citi’s Master Collateralized Murabaha Agreement is based on the International Islamic Finance Market’s Master Collateralized Murabaha Agreement and the collateral can be pledged or transferred depending on the client’s preference.

Risk Management Solutions

Citi has developed Sharia-compliant hedging solutions for corporates akin to traditional swap agreements, cross currency, and other derivatives.

Citi’s Profit Rate Swap and the Currency Profit Rate Swap achieves Sharia-compliance by using reciprocal Murabaha transactions whereby a series of transactional steps are undertaken by both parties to generate a fixed and floating profit rate payable on each leg of the swap. This allows clients to achieve the immunization benefits of traditional derivatives and execute efficient Asset/Liability management, while maintaining Sharia compliance.

Citi uses the ISDA/IIFM Tahawwut Master Agreement