Al Baraka Turk Participation Obtains a US$ 240 Million Islamic Financing
Albaraka Turk Katılım Bankası A.Ş. (Al Baraka Turk), a subsidiary-banking unit of Al Baraka Banking Group BSC (ABG), signed a USD 240 million syndicated Islamic financing in Istanbul. Through the Shariah-compliant dual-currency syndication, Al Baraka Turk raised USD 98 million and EUR 108.5 million. The funding sought was oversubscribed by about two and a half time.
22 GCC, European and international banks (both Islamic and conventional) participated in the syndication. The syndication was arranged and managed by Standard Chartered Bank, ABC Islamic Bank (Bahrain) and Noor Islamic Bank (Dubai).
On this occasion, Mr. Adnan Ahmed Yousif, Chairman of Al Baraka Turk Participation Bank and President & Chief Executive of Al Baraka Banking Group, said: "We are very pleased today to see the great success of the funding deal for Al Baraka Turk Participation Bank which reflects the strong financial position and excellent reputation of the Bank. The deal also reflects the confidence of international investors and financiers in the parent company Al Baraka Banking Group, especially after the announcement by the Group and the Bank of their excellent financial results for last year and the first half of year 2010."
The funding deal comes as part of Al Baraka Turk's strategy to further expand and diversify its financial resources and further strengthen its name in the domestic, regional and global financial markets. Al Baraka Turk will use the proceeds of the deal towards the ongoing implementation process of a range of existing and newer products and services offered by it.
For his part, Mr. Fahrettin Yahsi, Member of the Board of Directors and General Manager of Al Baraka Turk Participation Bank, praised this new achievement by Al Baraka Turk Participation, which he said was a natural outcome of the outstanding performance of the Bank, as reflected by Standard & Poor's recent re-affirmation of the Bank's long term counterparty credit rating of BB / B (Short term) with a stable outlook.
Mr. Fahrettin Yahsi added that the bank had a long history of achievements in the Islamic banking market (participation banks) in Turkey and also possesses adequate funding resources backed by a strong deposit base and limited market risk. The Bank also maintains the quality of its assets and capital base at high levels.
Al Baraka Turk Participation is 56.6% owned by the Bahrain-based Al Baraka Banking Group BSC which has shown a strong sense of commitment towards its subsidiary banks, particularly through continued support to their capital base and providing them with a good risk management system. The Bank currently has about 110 branches in all parts of Turkey.
Al Baraka Banking Group is a Bahrain Joint Stock Company listed on Bahrain stock exchange and Nasdaq Dubai. It is a leading international Islamic bank with Standard and Poors long term and short term credit ratings of BBB- and A3 respectively. ABG offers retail, corporate and investment banking and treasury services strictly in accordance with the principles of the Islamic Shari'a. The authorized capital of ABG is US$1.5 billion, while total equity amounts to about US$1.7 billion.
The Group has a wide geographical presence in the form of subsidiary banking Units and representative offices in thirteen countries, which in turn provide their services through more than 400 branches. These banking Units are Jordan Islamic Bank, Jordan; Al Baraka Islamic Bank, Bahrain; Al Baraka Islamic Bank, Pakistan; Al Baraka Bank Algeria, Algeria; Al Baraka Bank Sudan, Sudan; Al Baraka Bank Ltd, South Africa; Al Baraka Bank Lebanon, Lebanon; Al Baraka Bank Tunis, Tunisia; Al Baraka Bank Egypt, Egypt; Al Baraka Turk Participation Bank, Turkey; Al Baraka Bank Syria, a representative office in Indonesia and a representative office in Tripoli, Libya (under formation).