Tuesday 18, April 2017 by William Mullally

$213,000,000 syndicated Murabahah financing facility for AlBaraka Türk

The Facility received a good response from the market with 12 institutions participating from GCC, Europe and MENA. Due to the oversubscription, Albaraka Türk decided to increase the facility size to $213,000,000.

Bank ABC Islamic, Dubai Islamic Bank PJSC, Emirates NBD Capital Limited, Qatar Islamic Bank QSC and Standard Chartered Bank were appointed to arrange a $150,000,000 Syndicated Murabahah Financing Facility. Bank ABC Islamic acted as Coordinator and Investment Agent on the Facility. The Facility was signed on 13 April 2017.

The Facility received a good response from the market with 12 institutions participating from GCC, Europe and MENA. Due to the oversubscription, Albaraka Türk decided to increase the facility size to $213,000,000.

The Facility has been structured as a Shari'ah-compliant Murabahah Facility with a 370 days tenor, and a Profit Margin of 125 basis points per annum 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.

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