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US$75 million dual currency Murabaha facility for Turkish bank

Manama, Bahrain: ABC Islamic Bank along with Noor Islamic Bank PJSC and Standard Chartered Bank (the “Initial Mandated Lead Arrangers” and “Bookrunners”) have been mandated by Turkey’s Bank Asya to arrange a US$75 million (and/or equivalent in Euros) syndicated dual currency Murabaha financing facility (the “Facility”).

The facility which offers a profit margin of 225bps over the applicable benchmark has been structured as a Shari’a compliant dual-currency facility with a one-year tenor. Proceeds will be used to fund Bank Asya’s Islamic trade finance activities.

About Bank Asya

Bank Asya was established in 1996 in Istanbul and operates in accordance with the principles of interest-free banking. (“Interest-free banking” is also defined as “Participation banking” in Turkey)

It is one of four ”Participation banks” currently operating in Turkey, and as such is subject to the Turkish Banking Act; the regulations of the Banking Regulation and Supervision Agency; and Savings Deposit Insurance Fund regulations. Bank Asya is currently rated “Ba3” by Moody’s Investor Services and “B/Stable” by Fitch Rating Services, which reaffirmed its rating in November 2009. JCR Eurasia Rating has also upgraded long-term international foreign currency and long term international local currency ratings from “bb-“ to “BB” along with a “Stable” outlook. Turkey also enjoys a long term rating of “BB+” by Fitch, “BB-” by S&P and “Ba2” by Moody’s.

As a leading participation bank in Turkey, Bank Asya is pioneering technological developments and supporting its clients with innovative products both in retail and corporate businesses. Thanks to these innovative products, Bank Asya enjoys a market share of 32% of participation bank deposits and a 44% share in domestic financing by participation banks as of June 2009. It is also the largest participation bank in terms of shareholders’ equity and has been the fastest growing indigenous bank since 2001. In addition it enjoys a high ROAE of 21.0% in the sector (based on ISE listed banks Q3 2009 results) and benefits from sound growth in both current account and profit sharing account deposits.

Bank Asya’s balance sheet grew by 38% YTD with total assets of YTL11.2bn as of 30th September, 2009 compared to 31st December, 2008. Shareholders’ equity at the end of the third quarter of 2009 stood at YTL1.718bn, recording an increase of 21% YTD over the fourth quarter of 2008, whilst quarterly net income stood at YTL80m, a growth of 43% over the comparable third quarter in 2008.


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