Hogan Lovells advises on us $236 million dual currency murabaha facility for Ziraat participation bank

DUBAI, 4 June 2017 – Hogan Lovells has advised arrangers on a US$236 million equivalent syndicated dual currency commodity murabaha facility for Ziraat Participation Bank.

The USD and EUR Facility has been structured as a Shari’a-compliant term commodity Murabaha facility and shall be used for general funding purposes. The Facility received a strong response from the bank market with 11 international and regional institutions participating from Europe and MENA. Due to the significant oversubscription, Ziraat Participation Bank increased the initial facility size from US$150 million to US$235.9 million.

HSBC Bank Middle East Limited acted as the facility coordinator and ABC Islamic Bank (Bahrain) took the role of investment agent.

The Hogan Lovells team was led by Rahail Ali (Global Head of Islamic Finance & Managing Partner, Dubai), with support from Ahmet Kalafat (Senior Associate, Dubai) and trainee Marjun Parcasio.

Commenting on the transaction, Rahail said:

"We have been active in the Turkish Islamic finance market for a very long time. Turkey has made great achievements in the area of Islamic finance within the last 10 years and we are proud to be part of this impressive journey. Having represented the banks on Ziraat Katilim's debut murabaha syndication last year, I am happy to say that the successful completion of this transaction is a testament to the Turkish Government's continued commitment to support participation banks."

Hogan Lovells has a first-rate reputation as a leader in Islamic finance, having advised on many first-of-their-kind transactions, such as the first major sukuk by an African sovereign, the first convertible sukuk, the first equity-linked sukuk, the first Sharia-compliant securitisation, the first international sukuk al-mudaraba and sukuk al-musharaka, the first sukuk buy-back, and the first Multilateral Investment Guarantee Agency (MIGA) guaranteed Islamic project financing.

Our team has also advised on the first sukuk to be issued in Turkey for Kuveyt Türk and the first sukuk to be listed on the Global Exchange Market of the Irish Stock Exchange for Aktif Bank on its debut sukuk offering.

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