A $245 million and Euro 60 million syndicated murabaha financing facility was recently signed for AlBarakaTürk, a leading bank in Turkey.

Arab Banking Corporation, Dubai Islamic Bank, Emirates NBD Capital, Mashreqbank, Noor Bank, Sharjah Islamic Bank and Standard Chartered Bank (collectively the “Initial Mandated Lead Arrangers and Bookrunners”) were appointed to arrange the $210 million syndicated murabaha financing facility.

Bank ABC and EMCAP acted as Joint-Coordinators on the facility.

The facility has been structured as a Shari’a compliant Murabaha Facility with a 370 days tenor, and carries a Profit Margin of LIBOR + 1.25 per cent p.a. for USD commitments and EURIBOR + 1.15 per cent p.a. for EUR commitments over 3-month LIBOR.

Despite the market volatility, the Facilities achieved a strong response with the participation of 17 international banks across Europe and Middle East. Due to the oversubscription, AlbarakaTürk decided to increase the facility size to $319 million equivalent.

The facility has given AlBarakaTürk the opportunity to broaden and diversify its funding base, develop new bank relationships and strengthen existing ones. The proceeds will be used to expand its financing activities in Turkey. – TradeArabia News Service