Manama, Bahrain: Strengthening its position as a leading Islamic bank in the GCC, Bahrain-based ABC Islamic Bank has won the distinction of being the sole mandated arranger for a US$100 million, five-year amortizing, revolving Murabaha facility for Kuwait’s International Leasing & Investment Company (ILIC). The facility has been fully underwritten by ABC Islamic Bank.
Commenting on the deal, Dr. Khaled Al Hajeri, Chairman & CEO of ILIC said: “ILIC is pleased to have mandated ABC Islamic for this syndicated financing facility which will greatly help in supporting ILIC’s fast growing assets portfolio. The company is already a $500 million plus financial institution with its main focus on lease financing in its target markets around the world.
He added: “With the strong growth in assets and business activities during the last seven years, ILIC believes that diversity in its funding sources is of paramount importance and in the interest of its shareholders and business partners.”
Naveed Khan, Managing Director, ABC Islamic Bank, said: “We are delighted to have been awarded the sole mandate for this transaction following keen competition from other banks. We view ILIC as a growth oriented company in its stated mandate of promoting Islamic leasing within a rapidly growing Islamic banking market. We hope this transaction will provide further impetus for growth and help cement our existing relationship.”
About ILIC & ABC Islamic Bank
ILIC is a Kuwaiti shareholding company established in 1999. It is listed on the Kuwait Stock Exchange with a paid up capital of US$86.2 million. ILIC enjoys a strong shareholding which includes Islamic Development Bank – Saudi Arabia (28%) and AREF Investment Group (35%), Awqaf Public Foundation of Kuwait (6%), and the remaining equity is held by the general public (31%).
A leading player in the leasing sector in Kuwait and internationally, ILIC operates in accordance with Islamic Shari’a principles. The company is regulated by the Central Bank of Kuwait, Kuwait Stock Exchange and the Ministry of Commerce. For the year ended December 31, 2006, ILIC reported consolidated total assets of US$487.8 million and a net income of US$76 million, a 21% rise over the previous year.
ABC Islamic Bank, a subsidiary of Bahrain-headquartered Arab Banking Corporation, has been engaged in Islamic banking activities since 1998. ABC Islamic is supported by the ABC Group’s global network which includes ABC IB Islamic Asset Management in London.