Turkey’s Kuveyt Turk Katilim Bankasi has successfully closed a $350 million equivalent syndicated dual currency dual tranche murabaha financing facility. ABC Islamic Bank, Abu Dhabi Commercial Bank, Barwa Bank, Emirates NBD Capital Limited, Noor Bank and Qatar Islamic Bank were appointed to arrange a $250 million (and/or equivalent in euros) syndicated dual currency dual tranche murabaha financing facility, said a report in the Gulf Daily News (GDN), our sister publication.
Kuwait Finance House and Kuwait Turkish Participation Bank (Dubai) Limited acted as advisers to Kuveyt Turk for the facility. Following a strong response from the market, the facility was significantly oversubscribed. Kuveyt Turk elected to increase the facility size to $350 million equivalent in dollars and euros. The facility is structured as a Sharia-compliant dual currency facility with tenors of one year and two years.
The profit margin for each one year tranche is 80 basis points per annum and the profit margin for each two year tranche is 100 basis points per annum, both over the three-month Libor/Euribor respectively.
Originally published on www.tradearabia.com