DUBAI, Sept 15 (Reuters) - Turkish Islamic bank Albaraka Turk has secured a $450 million dual-tranche murabaha loan, the proceeds of which will be used to expand its financing activities in the country, it said in a statement on Tuesday.
The bank closed a $278-million portion and a 154.5 million- euro ($174.7 million) tranche in the 367-days and 733-days tenures paying profit margins of 1.1 and 1.25 percentage points over the London interbank offered rate/Euro interbank offered rate respectively.
Sixteen investors participated in providing the facility from Europe and the Middle East and North Africa region, it said. The deal was done as a murabaha, a cost-plus-profit arrangement which is one of the most popular formats for structuring Islamic loans.
"Due to the significant oversubscription, Albaraka Turk decided to increase the facility size to $450 million and/or equivalent in euros," the company said, adding it had originally planned to borrow $400 million.
Bank ABC Islamic, Barwa Bank, Emirates NBD, Kuwait International Bank and Standard Chartered were the arrangers for the deal. ($1 = 0.8846 euros) (Reporting by Archana Narayanan; Editing by Greg Mahlich)