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Türkiye Finans in $350m murabaha syndicated deal

Türkiye Finans secures largest murabaha syndicated financing in participation banking $350 million

  • Staff Report
  • Published: 13:59 May 15, 2012

Dubai Türkiye Finans, Turkey’s leading participation bank, has signed the largest murabaha syndicated deal of the participation banking with a sum of $350 million dollars.

Led by ABC Islamic Bank, HSBC, Noor Islamic Bank and Standard Chartered Bank, the consortium included a total of 29 banks from 15 countries.

With this murabaha syndicated loan deal, Türkiye Finans continues to create added-value for Turkish economy by supporting the companies in need of corporate financing and SMEs in particular.

Türkiye Finans, a leading Turkish participation (Islamic) bank, has signed a murabaha syndicated loan deal led by Noor Islamic Bank, ABC Islamic Bank, HSBC, and Standard Chartered Bank.

The signing ceremony was held at Conrad Hotel Istanbul, with the participation of Türkiye Finans General Manager Derya Gürerk, ABC Islamic Bank Turkey Representative Muzaffer Aksoy, HSBC Global Banking Deputy General Manager Selim Kervancı, Noor Islamic Bank CEO Hussain Al Qemzi and Standard Chartered Bank Deputy General Manager in Charge of Europe, Africa and South Asia Hiren Singharay.

The deal marks the largest murabaha syndicated loan ever signed in the Turkish participation banking sector with $251.5 million, plus €76.5 million, equivalent to $350 million. Maturity of the loan is one year and the profit rate is six-month Libor / Euribor plus two per cent.

Warba Bank of Kuwait entered the Turkish syndicated loan market for the first time with this deal within a consortium of 29 major banks from Europe and the Gulf region.

Türkiye Finans General Manager Derya Gürerk highlighted that 29 banks have invested in Turkey through murabaha syndicated financing and relying on Türkiye Finans, adding: “Last year we signed the largest murabaha syndicated financing deal in the participation banking industry. In March this year we mandated banks for syndication. We completed the book-building process in just two months. This year the number of participating banks rose to 29 from 19 last year. This shows the confidence of international markets in the Turkish economy and Türkiye Finans, which is one of the five banks with highest credit ratings after the assessment of Fitch this year. This also illustrates the strength and prestige of Turkish bank in the international arena”.

Gürerk highlighted that the murahaba syndication deal provide additional credit and liquidity facility for the Turkish banking sector and Turkish economy.

“At Türkiye Finans, we will make use of this syndication primarily for SME’s and other companies in need of corporate finance support with reasonable cost and conditions,” he said.

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