Noor Islamic to arrange $1bn Turkish debt
Dubai, April 19, 2012
Dubai-based Noor Islamic Bank has arranged more than $2 billion of debt transactions in Turkey since the beginning of 2011 and targets a further $1 billion before year-end, its chief executive officer told Reuters in an interview on Wednesday.
"There's huge demand for financing in Turkey, mainly in the small and medium enterprises (SME) business. We've done $2 billion... and expect another $1 billion this year," said Hussain Al Qemzi.
"The bank is very active in the sukuk and structured finance syndications, mainly to financial institutions," he added.
Noor Islamic, which is 25-per cent owned by the Investment Corporation of Dubai and 25-per cent by Dubai Holding, does not have a physical presence in Turkey but it may consider applying for a commercial banking license later this year.
The potential to develop Turkey's nascent Islamic finance market is attracting increasing attention, especially from global and regional banks sensing new business opportunities.
Noor Islamic, along with Dubai's Emirates NBD, ABC Islamic Bank, National Bank of Abu Dhabi, and Standard Chartered earlier this week arranged a $325 million dual-currency syndicated Islamic loan for Turkish lender Asya Katilim Bankasi (Bank Asya).
Late last year, Noor Islamic also arranged a $350 million dual currency Islamic structured Murabaha syndicated financing facility for Albaraka Türk.
Al Qemzi said the bank aimed to sustain its loan syndication business in the Turkish market by strengthening its collaboration with local banks and broadening relationships with corporate issuers.
Noor Islamic bank's presence in the Middle East is focused on the UAE market, with a representative office in Tunisia. Al Qemzi ruled out any acquisitions plans in the near future. – Reuters