|Real Estate News|
Acting as the syndicate manager for the Bank of Bahrain and Kuwait (BBK) and the Ahli United Bank (AUB), the Bahrain Islamic Bank arranged the syndicated Islamic finance in support of the business of Tameer, a major real estate company in Bahrain listed on the Exchange Markets of both Bahrain and Kuwait. Additionally, BIsB has also structured the finance through the London Metals Exchange’s Global Commodity Murabaha.
The Murabaha agreement was signed, on behalf of BIsB, by Nadir Mohammed Ibrahim, General Manager Corporate Banking, and on behalf of Tameer by Vice Chairman and Managing Director, Ahmed Al-Qattan.
On this occasion, Nadir Mohammed Ibrahim said:
‘The conclusion of this agreement is the culmination of concentrated efforts that have resulted in the Bahrain Islamic Bank succeeding in assuming the role of the syndicate manager for the other participating banks. BIsB also succeeded in structuring the finance through the London Metals Exchange’s Global Commodity Murabaha.’
Tameer’s Vice Chairman and Managing Director, Ahmed Al-Qattan, said: ‘We are delighted to cooperate with BIsB, BBK and AUB, as we always have confidence in the ability of these banks to respond to the Company’s requirements for finance and other facilities.’
As to the role of BIsB in this transaction, the Bank’s Corporate and Government Banking Assistant General Manager, Khalifa Najim, explained that BIsB has performed several functions to ensure the success of this transaction. He pointed out that the Bank assumed the role of the syndicate manager for the participating banks, structured the finance through the London Metals Exchange’s Global Commodity Murabaha and drafted the relevant contracts.
The Global Commodity Murabaha, where it is consistent with Islamic law, is an acceptable Shariah compliant product. Such products are of prime priority for BIsB, being the first Shariah complaint commercial Bank in the Kingdom of Bahrain.
Participation of the Bank in such Islamic transactions stems for the Bank’s firm belief in promoting such financial instruments and in sharing such products with the private and the public sectors in undertaking developmental and business projects and in encouraging the furtherance of economy. The Bahrain Islamic Bank currently seeks to expand on Islamic financing, beginning with the local market and extending to Gulf, Arab and global markets.