AlBaraka Türk closes $319m Murabaha financing
MANAMA, April 26, 2018
AlBaraka Türk, a pioneer in the field of interest-free banking in Turkey, has closed a syndicated Murabaha financing facility worth $319 million.
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 a $210 million syndicated Murabaha financing facility, a statement said.
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, Albaraka Türk decided to increase the facility size to $319 million equivalent.
Bank ABC and Emcap acted as joint coordinators on the facility. $245 million and €60 million dual currency facilities were signed on April 19.
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 per annum for USD commitments and Euribor +1.15 per cent per annum for Euro commitments over three-month Libor.
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, said the statement.
AlBaraka Türk was founded by Al Baraka Banking Group, Bahrain (ABG), one of the prominent groups of the Middle East, Islamic Development Bank (IDB) and local partners (Alharthy Family). – TradeArabia News Service
