APIF provides a competitive source of financing for income-generating real estate assets (awqaf) with the objective to serve charitable organizations. Specifically, APIF finances any of the following:
- new construction (i.e. greenfield projects),
- existing property enhancement
- existing property purchase
The main condition of financing the project is that at the end of the financing period, the project will be registered as a Waqf where possible or otherwise as an equivalent legal status (e.g. trust), to ensure perpetuity thereby achieving the APIF mandate.
Consideration for APIF financing is open to Awqaf ministries and institutions as well as charitable organization/trusts operating in accordance with Waqf principles in IsDB MCs and NMCs. However, the beneficiary is expected to provide at least 25 percent of the total project cost or a plot of land for the project (in case of a greenfield project).
The following clarifies how to benefit from APIF financing:
|Eligible for APIF Financing||
|Main Condition of Financing||
At the end of the financing period, the project will be registered as a Waqf where possible or otherwise as an equivalent legal status (e.g. trust).
|Mode of Financing||
|Project Value||Above US$5.0 million (Including land value)|
|Terms of Financing||The maximum tenor is 15 years including gestation period not exceeding 3 years|
|Collateral Security||Depends on the nature of the project (Sovereign guarantee, bank guarantee, mortgage, etc.)|
|Pricing/Mark-up||On a case-by-case basis|
|Currency of Financing||US Dollars|
|Documents Required to Apply||