Albaraka loan enjoys oversubscription but Turkish premiums could creep up

Albaraka Turk’s latest one year murabaha facility was two and half times subscribed with 17 banks involved, an official at the issuer told IFIS. The deal is likely the last of this year’s round of Turkish participation bank refinancing. But despite ample appetite for Turkish risk elevated loan costs are unlikely to drop next year, when refinancing will coincide with a general election, the official said.