Worth USD 450 million, Al Baraka Turk Participation Bank Conclude the Largest Islamic Finance in Turkey
Al Baraka Turk Participation Bank, which is a subsidiary banking unit of Al Baraka Banking Group B.S.C. (ABG), announced its success in concluding the largest Islamic finance deal in history of Islamic banking in Turkey worth USD 450 million with the participation of a group of major international banks.
After the two successful deals for USD 240 million in 2010 and USD 350 million in 2011, Albaraka Turk has successfully concluded the year 2012 Murabaha Syndication Facility in dual currencies with a breakdown of USD 293.2 million and EUR 124.5 million for a total USD equivalent of USD 450 million with the participation of 32 banks from 16 countries. This facility will be used for diversifying funding sources and increases its role in the Turkish market. The Facility has been structured as a Shari’a compliant Murabaha facility with a one-year tenor and the profit margin is 3 month LIBOR/EURIBOR + 200 basis points per annum.
A total of 32 banks from 16 countries covering the main financial centers in the world were participated in the Facility, including Standard Chartered Bank, Noor Islamic Bank PJSC, ABC Islamic Bank (E.C.) and Emirates NBD. Bank Islam Brunei Berhad Darussalam and Al Hilal Bank were nominated as Mandated Lead Arrangers.
The Facility will be signed in a large official ceremony on September 13th and will be attended by representatives of all the participating banks.
In this occasion, Mr. Adnan Ahmed Yousif, Chairman of the Board of Directors of Albaraka Turk Participation Bank and President & Chief Executive of Al Baraka Banking Group said “we are very delighted to great success of the Murabaha Syndication deal of the Bank this year, and this provides further evidence of the Bank’s distinctive reputation and position in the Turkish market, based on the strong financial position and the growing financial performance over the previous years, and it is also a global certificate of the distinctive reputation and prestige, which ABG enjoys regionally and globally. “
For his part, Mr. FahrettinYahsi, Member of the Board of Directors and General Manager of Albaraka Turk Participation Bank said ” with the continuing and steady growth of Al Baraka Turk Participation Bank over the past decade, the Bank has now passed the threshold of a small bank and can be said to qualify as a major player in the Turkish market. Therefore, we constantly resort to strengthen and diversify our financial resources that allow us to play this role relying on the strength and integrity of our financial performance, and our ability to adapt to the current difficulties, and thus gaining excellent reputation in the Turkish market, which is our main focus, because of the diversity and abundance of economic activities and huge promising opportunities that it offers”.
Albaraka Turk Participation Bank is one the subsidiary banking units of Al Baraka Banking Group. Al Baraka Banking Groupis a Bahrain Joint Stock Company Licensed as an Islamic Wholesale Bank by Central Bank of Bahrain, listed on Bahrain Bourse and Nasdaq Dubai stock exchanges. It is a leading international Islamic bank providing its unique services to around one billion people and with Standard and Poor’s investment grade long term counterparty credit rating of BBB- / A-3 (Short Term). Al Baraka offers retail, corporate, treasury and investment banking services, strictly in accordance with the principles of the Islamic Shari’a. The authorized capital of AlBaraka is US$1.5 billion, while total equity amounts to about US$1.8 billion.
The Group has a wide geographical presence in the form of subsidiary banking Units and representative offices in fifteen countries, which in turn provide their services through more than 400 branches. Al Baraka is currently having a strong presence in Jordan, Tunisia, Sudan, Turkey, Bahrain, Egypt, Algeria, Pakistan, South Africa, Lebanon, Syria, Indonesia, Libya, Iraq and Saudi Arabia.
