Ithmaar Bank, AUB in $167m morabaha deal
Manama, December 27, 2010
Ithmaar Bank, an Islamic retail and commercial bank, and Ahli United Bank (AUB), a full commercial bank based in Bahrain, have signed a $167 million (BD63 million) five-year secured Morabaha facility.
The Morabaha facility (Sharia-compliant Islamic finance) is fully underwritten by Ahli United Bank.
The transaction marks the return of Ithmaar Bank to the credit markets after its reorganisation and transformation into an Islamic retail-focused bank earlier this year.
“We have focused on further diversifying our liquidity base by strengthening our interbank and institutional relationships, and on growing our customer accounts by launching new customer-focused products and services,” said Ithmaar Bank chief executive and member of the board, Mohammed Bucheerei.
“This Morabaha facility will be used to improve the maturity matching of assets and liabilities as part of the bank’s overall liquidity management.”
“This is in line with our strategy to provide the necessary means of funding for companies and institutions, enabling them to better adjust and respond to the current economic cycle. With its reorganisation as a retail bank, we expect Ithmaar Bank to continue to perform well and generate profits going forward,” added AUB Group chief executive officer and managing director, Adel A El-Labban.-TradeArabia News Service