Dubai Financial 'seeks Dh1.5b Islamic loan'

Dubai: Dubai Fin-ancial Group is seeking Dh1.5 billion through an Islamic loan for general corporate purposes, two bankers familiar with the transaction said on Sunday.

The murabaha facility will have a three-year tenor, said one of the bankers, who declined to be identified as the deal is not public. Dubai Financial officials were not immediately available for comment.

The issue, which is out for general syndication, is being arranged by Noor Islamic Bank, Standard Bank and Al Khaliji Commercial, said one of the bankers.

In a murabaha deal a financier, such as a bank, buys a commodity and sells it to the customer at a higher price, complying with Islam's ban on interest.

Dubai Financial, a unit of Dubai Holding, invests in financial services firms with focus on South East Europe, the Middle East and North Africa and Asia, according to its website.

It holds stakes in companies including Greece's Marfin Popular Bank, Bank Muscat and EFG-Hermes.