DenizBank Renews Murabaha Financing with $340 Million Demand at 165% Rate
Forex - DenizBank has successfully raised $340 million in its murabaha syndication financing, which won two awards in the "Islamic Syndication of the Year" category at the "Global Banking & Markets: CEE, CIS & Turkey Awards," with a demand rate of 165%.
With the participation of financial institutions from 9 countries, the amount of resources provided by DenizBank to the country's economy in the last two years has exceeded $4 billion, alongside a 2-year term transaction. The transaction, in which Emirates NBD acted as the intermediary bank, was coordinated by Emirates NBD Capital. With the participation of new banks, the process collected demand of 165%, and the total cost of the financing was established at Sofr + 1.75% and Euribor + 1.50% for a 1-year maturity, and Sofr + 2.25% and Euribor + 2.00% for a 2-year maturity.
“We are diversifying our funding sources”
In a statement regarding the matter, Bora Böcügöz, Deputy General Manager of DenizBank's Treasury, Financial Institutions and Investment Group, said: "As DenizBank, we are strongly continuing our contribution to the economy with the resources we obtain from international markets. Our Islamic syndication, which we launched in 2023, marked the first time a conventional commercial bank in Turkey has executed such a transaction, and it recently received awards in two categories from one of the most prestigious organizations in the international capital and financial markets, Global Banking & Markets: CEE, CIS & Turkey. We have now renewed our syndication with the participation of financial institutions from Gulf countries, Europe, and Asia. We will facilitate the financing of projects with a development impact for our SMEs using the portion provided by the Islamic Corporation for the Development of the Private Sector (ICD). This transaction, which adds diversity to our funding sources, makes us proud as a testament to our reliable position and reputation in international markets."