Albaraka Türk Katılım Bankası (Albaraka Türk), a unit of Bahrain-based Al Baraka Banking Group, has successfully closed a $268 million syndicated Murabaha financing facility on April 9, it was announced yesterday (April 13).

ABC Islamic Bank, Emirates NBD Capital, Kuwait International Bank, Noor Bank and Qatar Islamic Bank, collectively the initial mandated lead arrangers and bookrunners, were appointed to initially arrange a $150 million facility, which received a strong response from the market with 14 institutions participating from Europe and Mena, said a report in the Gulf Daily News (GDN), our sister publication.

Due to the significant oversubscription, Albaraka Türk decided to increase the facility size to $268 million.

The facility is structured as syndicated Murabaha financing with tenor of two years and three days.

The profit margin is 125 basis points per annum over three-month Libor.

The facility has given Albaraka Tür 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