Kuwaiti leasing firm Aayan Leasing & Investment will sign a $175 million Islamic syndicated loan on Wednesday, a banking source said.

The loan was increased from $150 million after an oversubscription.

Aayan, which complies with Islamic law, said at the beginning of April it planned to borrow $400 million in Islamic financing, including through asset-backed securities.

Khaled Al-Tawari, vice president of treasury, said at the time that proceeds would be used to restructure the firm's liabilities.

HSBC and Standard Chartered are joint arrangers on the loan. Bahrain's Liquidity Management Centre was mandated to arrange a $250 million securitisation.

Aayan provides financing for lease products, credit facilities and also invests in companies.-Reuters