$120.5 million murabaha facility for Azerbaijan bank

Barwa Bank, Emirates NBD Capital Limited, J.P. Morgan Limited and Noor Islamic Bank PJSC have announced the successful closure and signing of a $120.5 million syndicated murabaha financing facility for the International Bank of Azerbaijan.

Launched at $100 million, the facility was oversubscribed to close at $120.5 million with participation from 10 banks.

The facility was the debut Shari'a compliant facility for IBA, structured with a tenor of 18 months and a profit rate of 325 basis points per annum over Libor. Proceeds from the facility will be used by IBA to fund its Shari'a compliant financing activities in Azerbaijan.

The facility was signed on  July 16, according to a IBA's press release carried by Zawya.

International Bank of Azerbaijan was incorporated in 1992 as a fully state-owned bank and is domiciled in the Republic of Azerbaijan. On  October 28 1992, the IBA became a joint-stock commercial bank and the Ministry of Finance of the Republic of Azerbaijan became the major shareholder of IBA. Currently, the MoF is the majority shareholder with 50.2  per cent equity stake in IBA.




 

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