Kuwait Finance House (KFH) has announced the successful conclusion of USD 350 Mln syndicated club murabaha facility for KFH-Turkey.
In a press release, the Bank said that the deal was twice oversubscribed and was conducted in a record time with participation of 12 global and regional banks, which affirms the strong position of KFH Group and the Turkish economy, in addition to the global momentum of sharia -complaint products and structures.
Chief Executive Officer at KFH, Mazin Saad Al-Nahedh, stated that KFH had been appointed as the deal consultant with KFH-Turkey's subsidiary in Dubai, where KFH managed, by its Structured Finance Team, to appoint the lead arrangers of the deal, set marketing and subscription strategies and plans, appoint the legal consultant, and identify financing and participants' costs.
He added that the syndicated club murabaha facility was arranged in two tranches of 2-year term for USD 300 mln and 2 and 3-year term for Euro 40 mln.
Moreover, Al-Nahedh indicated that ahead of KFH-Turkey's request to arrange the deal, KFH managed to conclude the deal in 4 weeks which is considered a record time for such kind of deals.
The subscription reached USD 40 mln which prompted KFH-Turkey to increase the deal's value to USD 350 mln from the initial value of USD 250 mln.
Al-Nahedh stressed that attracting participation from 12 regional and global banks and financial institutions as lead arrangers or lenders, 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 KFH diversity in currency; US dollars and Euro, which enhances the bank's ability to finance as per market's demands, and meet clients' needs in those currencies.
Furthermore, Al-Nahedh underlined KFH's unremitting efforts in boosting debt capital market by arranging significant deals and projects in an attempt to address 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 lead arrangers are: Abu Dhabi Commercial Bank, Arab Banking Corporation Islamic Bank, Barwa Bank, Emirates NBD, Noor Bank, and Qatar Islamic Bank, while other participants are: Boubyan Bank, NBK, the Saudi British Bank SABB, Ahli United Bank-Bahrain, United Arab Bank, and Commerzbank.