Sberbank : Sber markets new Islamic finance products

Sberbank customers who are focused on investing in the instruments that meet partner financing terms can now invest in shares of Russian issuers.

Islam says that Muslims can't use debt instruments generating income, like the conventional shares or bonds. Buying ETFs or shares screened for compliance with AAOIFI or IFSB standards conforms to Islamic finance norms because investors build income in line with a company's permitted operations while meeting specific financial coefficients.

Sberbank's center for partner financing and special projects has screened over 100 public companies in Russia - traded on Moscow and St. Petersburg Exchanges - for Shariah compliance and identified 14 businesses that meet the common standards designed by AAOIFI.

Starting this March, Sberbank customers can also invest in the top five global indices meeting Islamic finance standards: SP Funds S&P 500 Sharia Industry Exclusions ETF (SPUS), Wahed FTSE USA Shariah ETF (HLAL), World Islamic UCITS ETF (ISWD), Emerging Markets Islamic UCITS ETF (ISDE), USA Islamic UCITS ETF (ISUS). They are available on US exchanges.

To start investing in securities and other financial tools, customers just need to open a Sberbank brokerage account that will be used for that.

You can open a brokerage account quickly and easily using the Sberbank Online app or by going to your nearest Sberbank branch.

Detailed information on brokerage services is available on the bank's website or by calling 900, 8 800 555-5551, or + 7 495 967-1823 (for international calls). Also, you can contact your local client manager. Details can be found in the leaflet on Sberbank's website and in the investor message you will be emailed when opening a brokerage account.

We are happy to roll out inclusive banking products meeting Islamic finance criteria and relevant for the customers and investors complying with Islamic standards.

Oleg Ganeev

Senior Vice President, Sberbank