The maturity date for the murabaha loan, which will be provided under the leadership of Standard Chartered Bank, ABC Islamic Bank and Noor Islamic Bank, is one year.
Murabaha is an Islamic financing structure where an intermediary buys a property with free and clear title to it. The intermediary and prospective buyer then agree upon a sale price – including an agreed-upon profit for the intermediary – that can be made through a series of installments or as a lump sum payment.
Albaraka has finalized the syndication, which started at $100 million but grew to $240 million after a 2.4-fold increase in demand, said Fahrettin Yahşi, director-general of Albaraka Türk Bank.
“We plan to add new syndication loans to this in the upcoming period to support our customers’ investments, which can directly contribute to the country’s economy,” Yahşi said.
Albaraka plans to use the loan for financing in the real sector. “We do not have many products. One of the most important products that we have is the murabaha syndication. The other one is sukuk, which is the equivalent of bonds used to raise funds for large-scale investments,” Yahşi said.
Albaraka will end the year as a medium-sized bank with 120 branches, including newly opened branches, he said.
Great interest in Turkey
Noor Islamic Bank is eager to strengthen relations with Turkey’s financial institutions, said Galal Kulaib, director-general of the bank in Dubai.
“Turkey has powerfully overcome the recent economic crisis,” said Hammad Hassan, deputy president of marketing at ABC Islamic Bank. “Financial institutions are showing a great interest in Turkey.”
Source : http://www.hurriyetdailynews.com/n.php?n=albaraka-provides-murabaha-syndicated-loan-2010-09-16 - Sept 16, 2010
