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Türkiye Finans Receives the Largest Murabaha Syndicated Loan of Participation Banking Worth US$500 Million01 January 2014

Türkiye Finans, Turkey’s leading participation bank received the largest murabaha syndicated loan for the participation banking in Turkey with US$ 500 million dollars.

28 banks from 14 countries joined the syndicated loan with tranches of one-year and two-years. The co-leaderhip of the consortium consists of ABC Islamic Bank (E.C.), Al Hilal Bank PJSC, Emirates NBD Capital Limited, Noor Islamic Bank PJSC, Standard Chartered Bank and The Saudi British Bank.

“For the past two years, we received the largest murabaha syndicated loans in participation banking,” said Derya Gürerk, General Manager of Türkiye Finans. “This year, we managed to get offers for the murabaha syndicated loan in as little as one month and we managed to raise double the amount we requested. This is an indicator of the confidence of the international financial markets into our economy and Türkiye Finans.”

Türkiye Finans, Turkey’s leading participation bank, signed a US$ 500 Million murabaha syndicated loan with 28 banks with the co-leadership of ABC Islamic Bank (E.C.), Al Hilal Bank PJSC, Emirates NBD Capital Limited, Noor Islamic Bank PJSC, Standard Chartered Bank and The Saudi British Bank on June 19.

The Syndicated loan which consists of dual currency, namely US$ 426 million and EUR 57 million is worth US$ 500 million in total and it is the largest murabaha syndicated loan of the Participation Banking industry to date. The loan is structured with tenors of one year and two years, while the profit margin for the one year and two years tranches were Libor/Euribor+100 bps per annum for the first six months in the first year and Libor/Euribor+135 bps per annum for the two years tranche respectively while the subscribed amount for two years was US$ 360 million and for one year US$ 140 million.

“Türkiye Finans signed the largest murabaha syndicated loans in participation banking industry for the past two years,” Derya Gürerk, Türkiye Finans General Manager said, highlighting that 28 banks invested in Turkey through the murabaha syndicated loan, with confidence in the Turkish economy and Turkiye Finans. “This year, we authorized the bank in the beginning of May and in a time span as short as one month, we were able to receive the bids. Last year, 29 banks had participated in our syndicated loan and this year, 28 banks subscribed and we witnessed that the international markets continue their confidence in the Turkish economy and Türkiye Finans. We applied for a syndicated loan worth US$250 million however we took into consideration the high demand from the investors and we doubled the initial amount. It is also striking and exciting that US$360 million of this loan has two-year maturity. Just like the previous year, 2013 is a year full of success for Türkiye Finans​ since we also issued US$500 million sukuk, the largest amount to this day after the Turkish Treasury.”

Derya Gürerk, stated that through the murabaha syndicated loan, they will mainly provide corporate financing, for the SMEs seeking financial support and they will continue to create added value for the Turkish economy.

Banks taking part in the syndicated loan

ABC Islamic Bank (E.C.), Al Hilal Bank PJSC, Emirates NBD Capital Limited, Noor Islamic Bank PJSC, Standard Chartered Bank, The Saudi British Bank, British Arab Commercial Bank Plc, Citibank N.A., United Arab Bank PJSC, Türkiye Halk Bankası A.Ş. Bahrain Branch, BANK AUDI S.A.L. – Audi Saradar Group, Zürcher Kantonalbank, Qatar Islamic Bank Q.S.C., Ajman Bank, Dubai Islamic Bank PJSC, Boubyan Bank K.S.C., United Bank Limited, Ahli United Bank K.S.C., Bank of London and The Middle East Plc, Sharjah Islamic Bank PJSC, DenizBank AG, Deutsche Bank, Bank Audi Saradar France S.A., UBI Banca International S.A., Eurocity Bank AG, Banka Kombëtare Tregtare Sh.a., Oberbank AG, BankMed Sal.

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