Türkiye Finans secures largest murabaha syndicated financing in participation banking: $350m

The signing ceremony was held at Conrad Hotel Istanbul, with the participation of Türkiye Finans General Manager Derya Gürerk, ABC Islamic Bank Turkey Representative Muzaffer Aksoy, HSBC Global Banking Deputy General Manager Selim Kervancý, Noor Islamic Bank CEO Hussain Al Qemzi and Standard Chartered Bank Deputy General Manager in Charge of Europe, Africa and South Asia Hiren Singharay.

The deal marks the largest murabaha syndicated loan ever signed in the Turkish participation banking sector with $251.5m, plus €76.5m, equivalent to $350m. Maturity of the loan is one year and the profit rate is 6-month Libor / Euribor + 2.00%. Warba Bank of Kuwait entered the Turkish syndicated loan market for the first time with this deal within a consortium of 29 major banks from Europe and the Gulf region.

Türkiye Finans General Manager Derya Gürerk highlighted that 29 banks have invested in Turkey through murabaha syndicated financing and relying on Türkiye Finans, adding: "Last year we signed the largest murabaha syndicated financing deal in the participation banking industry. In March this year we mandated banks for syndication. We completed the book-building process in just two months. This year the number of participating banks rose to 29 from 19 last year. This shows the confidence of international markets in the Turkish economy and Türkiye Finans, which is one of the five banks with highest credit ratings after the assessment of Fitch this year. This also illustrates the strength and prestige of Turkish bank in the international arena."

Gürerk highlighted that the murahaba syndication deal provide additional credit and liquidity facility for the Turkish banking sector and Turkish economy. "At Türkiye Finans, we will make use of this syndication primarily for SME's and other companies in need of corporate finance support with reasonable cost and conditions," he said.

Banks Participating in the Syndicated Murabaha Deal

ABC Islamic Bank, HSBC, Noor Islamic Bank, Standard Chartered Bank, Ajman Bank, Al Hilal Bank, Bank Audi, Qatar Islamic Bank, Warba Bank, National Bank of Kuwait, Bank Sohar, Boubyan Bank, British Arab Commercial Bank, AlBaraka Islamic Bank, Alubaf Arab International Bank, Citibank, National Bank for Development, Arab Bank, BankMed, Credit Libanais, Zürcher Kantonalbank, Deutsche Bank, GarantiBank International, Vakýfbank International, Banka Kombetare Tregtare, Anadolubank Nederland, Oberbank, UBI Banca International, Capital Bank of Jordan.