Middle East Loans

Turkish lender Kuveyt Turk completed a $350m murabaha loan over new year, increasing the size on the back of high demand. The reception bodes well for the borrower’s planned sale of up to M$2bn in sukuk, for which it has already mandated.

Makram Abboud is VTB Capital's chief executive officer, Middle East and Africa and vice-chairman, international. Dan Alderson spoke to him about how the bank is carving out its niche in these regions, which have become a focus for Western banks with the shut out of the Russian loan market in 2014. Abboud also discussed challenges and opportunities in the year ahead and the prospect of VTB issuing its first sukuk.

Islamic Development Bank (IsDB) has agreed to provide two loans totalling $192m for the government of Benin.

Saudi Marketing Company (Farm Superstores) has renewed a SR100m () murabaha finance contract from Gulf International Bank

Dubai Aluminium (Dubal) has set pricing terms and drawn as many as 20 banks for a $1.8bn seven year loan.

Commercial International Bank in Egypt has obtained a $50m trade facility from the European Bank for Reconstruction and Development, under the EBRD’s Trade Facilitation Programme.

This year saw Middle Eastern banks provide some diversity in retail liquidity, opening their books to syndicated loans for Chinese and Indonesian names after having long been contributors to deals from India’s oil and gas sector. But their appetite could well be rocked by the precipitous decline in oil prices, as their deposits are heavily reliant on the natural resource, writes Shruti Chaturvedi.

Emaar the Economic City, a subsidiary of Emaar International charged with developing King Abdullah Economic City (KAEC) in Saudi Arabia, has signed an SR1.2bn ($319.8m) eight year murabaha facility with Alinma Bank.

The Egyptian General Petroleum Corp is seeking a three year term loan for $1.5bn, the first syndicated loan it has obtained with local and foreign banks since 2010, said a banker on the deal.

Marafiq, a Saudi utility service provider has signed a SR2.5bn ($666m) Islamic loan to expand its existing operations and fund future activities.

Kuwaiti oil company Kufpec has signed a $1bn five year term loan with a syndicate of banks.

HSBC is to see a senior departure from its loans business in the United Arab Emirates.