AlBaraka Türk Katılım Bankası has closed a $278 million and EUR154.5 million ($174.4 million) dual tranche syndicated murabaha financing facility.

Bank ABC Islamic, Barwa Bank QSC, Emirates NBD Capital, Kuwait International Bank and Standard Chartered Bank (collectively the “Initial Mandated Lead Arrangers and Bookrunners”) were appointed to arrange a $400,000,000 (and/or equivalent in Euros) syndicated murabaha financing facility.

The facility received a strong response from the market with 16 institutions participating from Europe and Mena. Due to the significant oversubscription, Albaraka Türk decided to increase the facility size to $450,000,000 and/or equivalent in Euros.

The facility is structured as a syndicated Murabaha financing facility with tenors of 367 days and 2 years and 3 days. The profit margins are 110 and 125 basis points per annum respectively over 3 month LIBOR/EURIBOR.

The facility has given AlBaraka Türk 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