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.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.