Sunday 29, April 2018 by Jessica Combes

$210 million syndicated Murabahah financing facility arranged


Arab Banking Corporation B.S.C., Dubai Islamic Bank PJSC, Emirates NBD Capital Limited, Mashreqbank psc, Noor Bank PJSC, Sharjah Islamic Bank PJSC and Standard Chartered Bank (collectively the Initial Mandated Lead Arrangers and Bookrunners) have been appointed to arrange a $210 million Syndicated Murabaha Financing Facility.  

Bank ABC and EMCAP acted as Joint-Coordinators on the Facility;  $245 million EUR 60 million Dual Currency Facilities were signed on 19 April 2018.

The Facility has been structured as a Shari’ah compliant Murabahah Facility with a 370-day tenor and carries a Profit Margin of LIBOR + 1.25 per cent p.a. for USD commitments and EURIBOR + 1.15 per cent p.a. for EUR commitments over three-month LIBOR.

Despite the market volatility, the Facilities achieved a strong response with the participation of 17 international banks across Europe and Middle East. Due to the oversubscription, Albaraka Türk decided to increase the facility size to $319 million equivalent.

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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