US$ 278,000,000 and Euro 154,500,000 Dual Tranche Syndicated Murabaha Financing Facility
AlBaraka Türk Katılım Bankası A.Ş. ("AlBaraka Türk") has successfully closed a US$278,000,000 and EUR154,500,000 Dual Tranche Syndicated Murabaha Financing Facility (the "Facility"). The Facility was signed on 9th September 2015.
Bank ABC Islamic, Barwa Bank QSC, Emirates NBD Capital Limited, Kuwait International Bank and Standard Chartered Bank (collectively the "Initial Mandated Lead Arrangers and Bookrunners") were appointed to arrange a US$400,000,000 (and/or equivalent in Euros) Syndicated Murabaha Financing Facility.
The Facility received a strong response from the market with 16 institutions participating from Europe and MENA. Due to the significant oversubscription, Albaraka Türk decided to increase the facility size to US$450,000,000 and/or equivalent in Euros.
The Facility is structured as a syndicated Murabaha financing facility with tenors of 367 days and 2 years and 3 days. The profit margins are 110 and 125 basis points per annum respectively over 3 month LIBOR/EURIBOR.
The Facility has given AlBaraka Türk the opportunity to broaden and diversify its funding base, develop new bank relationships and strengthen existing ones. The proceeds will be used to expand its financing activities in Turkey.
About AlBaraka Türk Katılım Bankasi A.Ş.
AlBaraka Türk was founded by AlBaraka Banking Group (ABG), Islamic Development Bank (IDB) and the Alharthy Family. It completed its establishment in 1984 and commenced operations in the beginning of 1985 as one of the pioneers in the field of interest-free banking. AlBaraka Türk is currently rated "BB" with negative outlook by S&P and "BBB-" with stable outlook by JCR Eurasia Rating. As at 31st March 2015, the ownership structure of AlBaraka Türk is as follows: international shareholders 66.10%, local shareholders 9.84% and 24.06% is publicly traded on Borsa Istanbul.
AlBaraka Türk commenced banking with the vision of becoming the best participation bank in presenting financial products and services. At the end of March 2015, AlBaraka Türk had 206 branches, 86 of which are in Istanbul, 120 in the prominent industry and trade centres of Turkey and one overseas office in Erbil, Northern Iraq, which started activities in May 2011.
At 31st March 2015, AlBaraka Türk recorded a market share of 23.1% within the participation bank sector by asset size. Its balance sheet grew by 39.3% with total assets of TRY 24,817 million compared to total assets of TRY 23,046 million as of December 2014. Shareholders' equity as of March 2015 was TRY 1,814 million, an increase of TRY 24 million against December 2014.
© Press Release 2015
