Albaraka Turk in $430m finance deal
Manama, September 18, 2013
A consortium of leading banks from the Middle East have announced the successful closure of a $430 million equivalent dual-currency syndicated Murabaha financing facility for AlBaraka Turk, the Turkish subsidiary of the Bahrain-based Islamic lender.
Regional giants ABC Islamic Bank, Barwa Bank, Emirates NBD Capital Limited, Noor Islamic Bank and Standard Chartered Bank are the initial mandated lead arrangers and the bookrunners for the syndicated facility.
Launched at $250 million, the facility was oversubscribed to close at $430 million with participation from 23 institutions from across the globe. The facility was structured as a Shari’a compliant US dollar and Euro dual currency, dual tranche Murabaha Facility with tenors of one year and two years, said a statement fro the Turkish bank.
The profit margins for the one year and two years tranches are100 basis points per annum and 135 basis points per annum respectively.
The facility has given AlBaraka Turk 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, it added.-TradeArabia News Service
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