Prime Bank PLC, in partnership with City Group, has launched a Shariah-compliant short-term investment instrument entitled "Teer Islamic Commercial Paper".

The initiative is designed to offer a new investment avenue aligned with the principles of Islamic finance, providing investors with an attractive return over a 180-day tenor.

The issuer of the Teer Islamic Commercial Paper is City Auto Rice and Dal Mills Limited, a concern of City Group, while Prime Bank is acting as the Issuing and Paying Agent (IPA) for the transaction, ensuring full regulatory adherence and comprehensive operational support.

Shams A Muhaimin, deputy managing director of Prime Bank, and Tanvir Hydar Pavel, director of finance and commercial at City Group, signed the agreement to this effect at the latter's head office in Dhaka today, according to a press release.

This financial instrument presents a distinctive opportunity for investors seeking Shariah-based short-term investment options, combining ethical investing with competitive returns.

Faisal Rahman, additional managing director of Prime Bank, stated, "This initiative reflects Prime Bank's unwavering commitment to innovation in Islamic finance and our resolve to offer a diverse portfolio of ethical, high-yield investment solutions."

"The Teer Islamic Commercial Paper marks a significant milestone in the financial landscape, opening new horizons for both institutional and individual investors seeking Shariah-compliant alternatives," he further added.

Md Hasan, managing director of City Group, commented, "The Teer Islamic Commercial Paper not only reinforces our dedication to responsible business practices but also provides investors with a secure, Shariah-aligned investment vehicle."

"We believe this initiative will establish a new benchmark for Islamic financial instruments in Bangladesh," he concluded.

Among others, M Nazeem A Choudhury, deputy managing director of Prime Bank; Sajid Rahman, senior executive vice-president; and Reza Uddin Ahmad, director of finance and investment at City Group; along with Khizir Hayat Khan, director of import, were also present.