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KFH announces successful conclusion of $350m syndicated club murabaha facility for KFH-Turkey

Kuwait Finance House (KFH) has announced the successful conclusion of $350m syndicated dual currency dual tranche murabaha facility for Kuwait Turkish Participation Bank (KTPB) – a subsidiary of KFH.

The deal was almost twice oversubscribed and was concluded in record time with the participation of 12 regional and global banks, affirming KFH Group global strong position and that of the Turkish Economy, in addition to the international momentum of sharia –compliant products and structures.

Chief Executive Officer at KFH, Mazin Saad Al-Nahedh, stated: that “KFH has been appointed as the Advisor to the deal alongside KTPB subsidiary in Dubai, KTPB Dubai, where KFH managed, through its Structured Finance team, to select and appoint the initial mandated lead arrangers and bookrunners to the deal, set syndication strategies and plans, shortlist financiers legal counsel, and determine the deal pricing. Al-Nahedh added that the syndicated murabaha facility was arranged in two tranches, $300m for a 2 year tenor and Euro 40m for a 1 and 2 year tenors.”

Moreover, Al-Nahedh indicated that KFH managed to conclude the deal in 4 weeks, a record time which is an achievement for a deal of this nature. The subscription levels reached $420m which prompted KTPB to increase the deal size to $350m from the initial launched deal target amount of $250m.

Al-Nahedh stressed that attracting the participation of 12 regional and global banks at various participation levels and titles, confirms KFH’s robust position and outstanding capacity to arrange such deals. It also affirms the confidence in KFH, its extensive experience, and strong relationships in international markets. He said that the deal offers KTPB currency diversity, US dollars and Euro, which enhances KTPB’s ability to extend financing as per its market demands, and meet its clients’ needs in those currencies.

Furthermore, Al-Nahedh underlined KFH’s constant efforts in tapping the debt capital markets to support significant deals and projects in an attempt to cater to the increasing growth of sharia-compliant products and services, noting that KFH enjoys enormous amount of regulatory experience and comprehensive knowledge of legal and legislative aspects by virtue of its leading position and local and global milestones in this field.

It is worth noting that the Initial Mandated Lead Arrangers and Bookrunners to the deal are: ABC Islamic Bank, Abu Dhabi Commercial Bank, Barwa Bank, Emirates NBD Capital, Noor Bank, and Qatar Islamic Bank, while the participants in the deal are: Boubyan Bank, Kuwait International Bank, Saudi British Bank, Ahli United Bank-Bahrain, United Arab Bank, and Commerzbank.