An istisna’a contract (استصناع) that combines two separate or stand-alone istisna’a contracts , the first of which is concluded between an Islamic bank and its customer (purchaser), in which the price is payable by the customer in the future, in agreed installments and the bank is obligated to deliver the underlying manufactured product at an agreed time.

The second contract of istisna’a is a subcontract concluded between the bank and a contractor to manufacture the underlying product according to preset specifications. The bank would usually pay the price in advance or during the manufacturing process in installments. The contractor is bound to deliver the product to the bank on the agreed date, which coincides with the date stated in the first istisna’a contract. The ultimate purchaser (i.e., the customer) may be authorized to receive the manufactured product directly from the manufacturer (contractor). However, the ultimate purchaser and the contractor must have no connection, implicit or explicit, with respect to the istisna’a transactions undertaken by the Islamic bank.

Istisna’a tamwili is Arabic (استصناع تمويلي) for financing commissioned manufacturing.

It is also known as parallel istisna’a (istisna’a muwazi).