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.