Unit of Bahrain's AlBaraka eyes $250m loan

Turkish subsidiary of Islamic lender has mandated banks to arrange syndicated loan

AlBaraka Turk, the Turkish subsidiary of Bahrain-headquartered Islamic lender AlBaraka Bank , has mandated banks to arrange a $250m syndicated loan, the company said in a statement on Monday.

The sharia-compliant, dual-currency facility has been structured as a two-part deal, and proceeds will be used for the bank's financing activities, the statement said.

The profit margin for the one-year tranche is 100 basis points over the relevant benchmark and for the two-year portion it is 135 bps over. Banks looking to join the deal can contribute either U.S. dollars or euros.

Earlier this year, AlBaraka Turk raised $200 million from a 10-year Islamic bond, or sukuk, which is non-callable until five years, at 7.75 percent. The sukuk was issued to boost Tier 2, or supplementary, capital.

AlBaraka Turk has mandated ABC Islamic Bank, Abu Dhabi-based Al Hilal Bank, Qatar's Barwa Bank, Dubai-based Emirates NBD and Noor Islamic Bank, and Standard Chartered as lead arrangers and bookrunners for the new syndicated facility, which was launched on July 18, the statement added.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Is Africa's investment dream still on track?

Is Africa's investment dream still on track?

It was the new bright spot for global investors, but widespread...

Deal-making to drive 2017 Middle Eastern banking fee bonanza

Deal-making to drive 2017 Middle Eastern banking fee bonanza

Fees from the Middle East reached $581m during the first nine...

Accounting meets religion in challenge for Islamic banks

Accounting meets religion in challenge for Islamic banks

Reconciling accounting standards and religious principles is...

Most Discussed
sponsoredTracking