Albaraka Turk Katm Bankas A.fi. (Al Baraka Turk), a subsidiary-banking unit of Bahrain-based Al Baraka Banking Group BSC (ABG), signed a $240 million syndicated Islamic financing in Istanbul.
Through the Shariah-compliant dual-currency syndication, Al Baraka Turk raised $98 million and euro 108.5 million. The funding sought was oversubscribed by about two and a half time.
Around 22 GCC, European and international banks, (both Islamic and conventional, participated in the syndication.
The syndication was arranged and managed by Standard Chartered Bank, ABC Islamic Bank Bahrain and NoorIslamic Bank Dubai.
"We are pleased today to see the great success of the funding deal for Al Baraka Turk Participation Bank which reflects the strong financial position and excellent reputation of the bank," said Adnan Ahmed Yousif, Chairman of Al Baraka Turk Participation Bank and President and Chief Executive of ABG.
"The deal also reflects the confidence of international investors and financiers in the parent company Al Baraka Banking Group, especially after the announcement of their excellent financial results for last year and the first half of year 2010," he added.
The funding deal comes as part of Al Baraka Turk's strategy to further expand and diversify its financial resources and further strengthen its name in the domestic, regional and global financial markets. Al Baraka Turk will use the proceeds of the deal towards the ongoing implementation process of a range of existing and newer products and services offered by it.
Fahrettin Yahsi, Member of the Board of Directors and General Manager of Al Baraka Turk Participation Bank, lauded the achievement and said it was a natural outcome of the outstanding performance of the bank, as reflected by Standard and Poor's in its latest rating.
"The bank had a long history of achievements in the Islamic banking market (participation banks) in Turkey and also possesses adequate funding resources backed by a strong deposit base and limited market risk. The Bank also maintains the quality of its assets and capital base at high levels," he added.
By Mahmood Rafique
© Bahrain Tribune 2010
