Islamic funding will support investment in a number of large oil and gas projects in the kingdom, including the BAPCO Modernisation Programme
Nogaholding, the holding company for oil and gas assets owned by the government of Bahrain, signed to obtain a five-year, $570 million murabaha financing facility, it said on Wednesday.
The Islamic funding will support investment in a number of large oil and gas projects in the kingdom, including the BAPCO Modernisation Programme, a liquefied natural gas import terminal, and the Bahrain Gas Plant Project, it said.
The facility is provided by 10 international, regional and local institutions: Arab Banking Corp, Ahli United Bank, Arab Petroleum Investments Corp, Gulf International Bank, National Bank of Bahrain, Qatar Islamic Bank, Kuwait Finance House, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas and HSBC.
Murabaha financing is a cost-plus-profit arrangement which complies with Islamic finance standards. The facility is 60 percent larger than originally envisaged, the company said; in November, Reuters reported that Nogaholding was seeking a $350 million sharia-compliant loan, the first for the group. Pricing details were not given.