Al Baraka Turk Participation Bank concludes Islamic finance deal in Turkey

After the two successful deals for $240m in 2010 and $350m in 2011, Albaraka Turk has successfully concluded a Murabaha Syndication Facility in dual currencies with a breakdown of $293.2m and EUR124.5m for a total dollar equivalent of $450m 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'ah-compliant Murabaha facility with a one-year tenor and the profit margin is three-month LIBOR/EURIBOR + 200 basis points per annum. 

A total of 32 banks from 16 countries 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 Mandated Lead Arrangers. 

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."

Fahrettin Yahsi, 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."

(C.P.I Financial / 15 Sep 2012)

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