CAPITAL MARKETS - Turkiye Finans enters into USD 300 mln Murabaha Syndicated Loan

Specially aimed towards an SME program, Turkiye Finans signed off a one year USD 300 mln Muarabaha Syndicated Loan, arranged by Citibank with 20 underlying banks.

From Brunei Bank Islam and from Malaysia Malayab Bank are reported to have participated.  It is the first syndicated Murabaha in Turkey where we have seen a Southeast Asian participation.  Other participating banks were amongst others Deutsche Bank (GER), Standard Chartered (UK), IDB and NCB (KSA). (full story)

CAPITAL MARKETS - Shariah-Compliant Hedging Derivatives Start in Malaysia: Islamic Finance

Standard Chartered Plc and Bank Islam Malaysia Bhd. plan to offer Shariah-compliant derivatives in Malaysia that will allow investors to hedge against interest rates and commodity prices.

Standard Chartered, the U.K. bank that earns most of its profit from emerging markets, will begin selling contracts in the first quarter that provide protection from fluctuations in the cost of items such as rice and oil, according to an e-mailed reply to questions yesterday. Bank Islam Malaysia, the country’s oldest Islamic lender, will offer swaps that allow two parties to exchange different forms of payments from an underlying asset.