FEB signs Euro 25 million Murabaha Facility
Manama, Kingdom of Bahrain | January 09, 2014
First Energy Bank (“FEB”) today announced the signing of a Euro 25 million Murabaha facility with Kore Coal Finance B.V., established in the Netherlands and a subsidiary of Sapinda Holding B.V. The financing will assist Sapinda in enhancing its investments in an internationally operating resource company which owns coal mining assets in South Africa. This Islamic facility supplements the recently concluded conventional Profit Participation Note of Euro 55 million raised by Kore Coal Finance with a similar objective.
The Murabaha facility has been structured on the basis of an attractive return and will be repaid by October 2016. FEB is acting as the Investment Agent and the Security Agent under this Murabaha financing.
“FEB is very pleased to extend its network relationships to conclude a Shariah compliant Euro facility, with an affiliate of Sapinda. This transaction marks the long term commitment of FEB to seize attractive and income generating opportunities”, said Mr. Mohamed Ghanem, Chief Executive Officer of FEB.
“We are very delighted to announce the successful closing of this transaction. We look forward to further diversify in asset classes which can generate similar sustained income streams”, said Mr. Tarun Puri, Head of Investment Management at FEB.