ELAF BANK AND SHAMIL BANK OF BAHRAIN ANNOUNCE THE CLOSING OF A MURABAHA FACILITY FOR THE SHAMIL BOSPHORUS MODARABA
MANAMA – 12 July 2008 – Elaf Bank, a Bahrain-based, Islamic, wholesale, investment bank (“Elaf” or the “Bank”) announced the closing of a 2-year Murabaha financing extended to the Shamil Bosphorus Modaraba sponsored by Shamil Bank and Turkish partners to undertake projects in Istanbul and on the Turkish coast in excess of US$ 450 million.
“Elaf Bank is keen on working closely with Islamic banks in the region and develop strong relationships with the view of syndicating large transactions in the future whether it be Sukuk or equities and in order to raise the overall profile of this niche industry that is becoming mainstream in the region. Shamil Bank of Bahrain is an institution with which we intend to develop such a relationship and we look forward to further join hands on interesting transactions.” said Dr. Jamil El Jaroudi, CEO of Elaf Bank.
“Shamil’s Bosphorus Modaraba is a unique, high-return investment vehicle that provides our customer base in the region with the opportunity to capitalize on the growth of the Turkish economy. We are pleased to partner with Elaf Bank, Bahrain to further develop the Beylikduzu real estate project, a key investment within our Modaraba,” said Faisal M. Al-Alwan, CEO of Shamil Bank.
“The Republic of Turkey is definitely one of the emerging markets which we have on our radar and through our shareholders a presence was established there a couple of years ago. We are definitely entertaining more deals in that market. As far as this deal is concerned, tenure, returns, risk, and security coverage were all carefully assessed and found to be acceptable to close it successfully. We know Shamil and the Turkish partners and would pursue potential joint ventures in that market soon if profitable.” said Mr. Ahmad Tayara, the General Manager for Investment Banking at Elaf Bank.
“The Murabaha was extended in connection with a single investment within the Modaraba, namely the Beylikduzu real estate development project. The use of proceeds would allow the Modareb and its Turkish partners to acquire an additional plot of land adjacent to the existing plot, straighten any shape irregularities that existed previously, and have full access to one additional road making the final plot a perfect rectangle surrounded by three roads one of which is a major highway in Istanbul, as well as enhancing its sale value. Overall, we are projecting a return of investment of close to 60 per cent for the Bosphorus Modaraba, based on a conservative mix of assets catering for different market niches, activities and geography,” said Abdul Hakim Khalil Al-Mutawa, Head of Private Banking, Shamil Bank.
About Elaf Bank:
Elaf Bank is a Bahrain-based, Islamic, wholesale bank regulated by the Central Bank of Bahrain and operating with an investment banking license (“Elaf” or the “Bank”). Elaf was established in June 2007 with a paid-in capital of USD 200 and an authorized capital of USD 500 million.
Elaf offers a range of investment banking services to corporate clients, institutional investors, and high net worth individuals encompassing advisory services focused on the debt & equity capital markets, as well as asset management services. The Bank’s primary focus is to originate, structure, and offer financial products that will strengthen the current state of the primary and secondary market for Sukuk. Furthermore, Elaf intends to carve itself a niche by actively participating in the equity and Islamic financing capital market as a market maker for Sukuk in the primary and secondary capital markets.
Elaf Bank’s shareholders base include the International Leasing & Investment Company, AREF Investment Group, Kuwait Investment Company owned largely by the Kuwait Investment Authority (the investment arm of the Kuwaiti government), Qatar Islamic Bank, Soukuk Holdings, and the Islamic Corporation for the Development of the private sector, a member of the Islamic Development Bank Group.
About Shamil Bank:
Shamil Bank is a Bahrain-based Islamic retail bank licensed and regulated by the Central Bank of Bahrain, with commercial and investment banking activities. It has grown steadily to become one of Bahrain’s leading financial institutions.
Shamil Bank provides a diverse range of products and services that cater to the financing and investment needs of individuals and institutions. Conducting its business in compliance with the principles of Sharia’a, it operates a network of local branches and maintains a presence in overseas markets through its subsidiaries, associated and affiliated companies. Shamil Bank is a wholly owned subsidiary of Ithmaar Bank B.S.C., a full service investment bank.