06 May 2016
US$155 Million equivalent Syndicated Murabaha Dual Currency Financing Facility for Ziraat Participation Bank

Ziraat Participation Bank has successfully closed US$155 million equivalent Syndicated Murabaha Financing Facility (the "Facility"). The Facility was signed on 27 April 2016 and is Ziraat Participation Bank's debut transaction in the syndicated financing market.

Bank ABC Islamic, Dubai Islamic Bank PJSC, HSBC and Warba Bank (the "Initial Mandated Lead Arrangers & Bookrunners") were appointed to arrange a one year Syndicated Murabaha Dual Currency Financing Facility of US$75 million launch amount. Bank ABC acted as Coordinator on the Facility. 

The Facility received a strong response from the market. Due to the significant oversubscription, Ziraat Participation Bank increased the facility size to US$155 million. The USD and EUR Facility has been structured as a Shari'a-compliant Murabaha facility with 3 Months Libor/Euribor plus 1.10 percent pricing.

"The very first syndicated murabaha facility is a crucial milestone in our path of growth. The demand and oversubscription in the facility was a clear sign of confidence to the Ziraat trademark and the Turkish economy.

Apart from the facility amount we achieved, Ziraat Participation's international introduction and penetration in to the syndicated loan market was indeed of great value to us. Having achieved such significant amount before the first anniversary of our establishment, we will certainly set to conclude higher facility amounts in the years to come. We were very much pleased with the market reaction and oversubscription and decided to increase the amount to USD 155 million accordingly.

Proceeds from the facility will be used to support the funding requirements of SMEs and the financing of trade related businesses of our commercial clients."  Said Mr Osman Arslan CEO of Ziraat Participation.

© Press Release 2016