Kuwait Finance House (KFH), the country's largest bank by market value, has arranged $155 million in financing for property developer Al Tijaria, the Islamic bank said on Tuesday.

The deal, which is based on the murabaha structure, was oversubscribed by 50 per cent over the original sum offered, it said in a statement.

Funds raised would be used to finance several of Al Tijaria's property projects and for general corporate purposes, it said. The deal was done through the bank's subsidiary, Liquidity Management House.

In a murabaha deal a financier, such as a bank, buys a commodity and sells it to the customer at a higher price, complying with Islam's ban on interest.-Reuters