Singapore’s Royal Group has secured a $220.8 million Islamic financing deal from RHB Bank Singapore.
Singapore based real estate firm, Royal Group has raised SGD$300 million ($220.8 million) in Shari'ah-compliant financing from RHB Bank, according to Reuters.
The deal is the first Islamic financing for the Royal Group, a developer and manager of real estate properties primarily in Malaysia and Singapore as the firm sought to diversify its funding options.
Islamic finance has seen limited use in the hospitality industry because of religious doctrines that limit exposure to alcohol-related businesses.
Nazmi Camalxaman, Head of Islamic banking at RHB Bank Singapore, said the deal is one of the largest Islamic finance transactions that involve hotel assets, in this case the SO Sofitel Singapore Hotel.