IslamicFinance.de

Turkish Islamic bank Albaraka Turk has secured a $450 million dual-tranche murabaha loan, the proceeds of which will be used to expand its financing activities in the country. The bank closed a $278-million portion and a 154.5 million- euro ($174.7 million) tranche in the 367-days and 733-days tenures paying profit margins of 1.1 and 1.25 percentage points over the London interbank offered rate/Euro interbank offered rate respectively. Sixteen investors participated in providing the murabaha facility from Europe and the Middle East and North Africa region. Due to the oversubscription, Albaraka Turk decided to increase the facility size to $450 million instead of $400 million as originally planned.