Amanah Islamic Bank ties up with Petron

MANILA, Philippines - The Al Amanah Islamic Investment Bank of the Philippines (Amanah Islamic Bank) and Petron Corp. is jointly offering a dealership program to small and medium entrepreneurs.

Amanah Islamic Bank is a first and only Islamic bank in the Philippines. It is a subsidiary of the Development Bank of the Philippines (DBP) with a capital base of P1 billion.

The PetronBulilit Station dealership program is aimed at promoting investment opportunities in Mindanao.

Amanah Islamic Bank chairman and chief executive officer Armando O. Samia said that under the program, the commercial bank would provide financing to qualified dealers of Petron for project site acquisition and capital expenditure requirements for the operation of Petron Bulilit gas stations or micro-filling station outlets.

The assistance includes a lease financing program wherein the bank will lease the project site to a Petron-endorsed dealer, with an option to acquire the property at the end of the term lease.

Al Amanah Bank is the first and only Islamic bank in the country and is mandated to serve the banking needs of the Muslim community. In 2008, the Development Bank of the Philippines(DBP) acquired full control of Amanah Islamic Bank to help support the development of DBP’s initiatives for micro, small and medium entrepreneurs in Mindanao, as well as to serve as the main remittance outlet for Muslims and Mindanao-based overseas Filipinos.

It presently operates nine branches of which eight are located in Mindanao.

Due to the unique character of shariah banking, lending is prohibited and deposits cannot earn interest.

But an Islamic bank can enter into joint venture or profit sharing arrangements with individuals or businesses. And it may receive deposits and reward the same with safe keeping fees. Instead of mortgage loans, the Amanah Islamic Bank can enter into a profit sharing arrangement with its bank client, with the bank acquiring the prospective property.

But the rest of the bank operations will be basically similar to commercial or conventional banking operations.