Kuwait lender Warba Bank (WB) has concluded a financing deal to purchase a USD-20-mln property and develop it into a multi-family residential complex by Criterion Group LLC based in New York. Hosam Naser Al Muzaiel, Warba Bank Investment Manager, said the total financing is approximately USD 20 million and the bank expects generating a 12 percent annual return.
He added the financing deal is expected to last for 30 months. The financing is the first Sharia-compliant financing transaction that is recognized as a building loan contract by the NY statute; this effectively means that the mortgage is superior to the subcontractor liens as well and thereby provides utmost level of security to the financier.
He noted that the conclusion of the first Sharia-compliant deal for construction financing purposes in the USA marks extraordinary step towards continued growth of Islamic finance, KUNA reported.