A101 Secures $175 Million Murabaha Financing From Emirates NBD And DIB To Support Growth Strategy In Türkiye

Yeni Magazacilik Anonim Sirketi (A101), a discount retail chain in Türkiye, has secured a $175 million Murabaha financing facility to support its expansion plans.

This strategic financial move was orchestrated by Emirates NBD, a top banking group in the MENAT region, which served as the Initial Mandated Lead Arranger and Bookrunner for the deal.

The Dubai Islamic Bank (DIB) also played a crucial role, handling the structuring and execution of this five-year credit facility.

Aimed at bolstering A101's growth, the funds will be directed towards opening new retail outlets and establishing warehousing and logistics centers across various Turkish cities.

In a significant push for expansion, A101 aims to utilize the $175 million proceeds to enlarge its operational footprint within Türkiye. This includes the establishment of additional brick-and-mortar stores and the enhancement of its logistical capabilities.

The investment is shared between two of the UAE's leading financial institutions, with A101 receiving $100 million from Emirates NBD and $75 million from DIB.

This financing underscores the banks' commitment to aiding corporate clients in Türkiye by offering customized financing solutions designed to foster long-term, sustainable growth.

Pri McNair, Group Co-Head of Corporate Coverage at Emirates NBD, highlighted the significance of this deal, stating, "Türkiye's one of the leading discount retailers, A101 is poised to benefit from accelerated growth, financed by the new $175 million facility made available through Emirates NBD, and our partners at DIB. This new five-year facility will fuel A101's vision of delivering even greater value to consumers. Emirates NBD's important role in this deal, which was facilitated by our Corporate Coverage unit, highlights our commitment to supporting businesses in key markets like Türkiye, within our network, through funding facilities that spur ongoing expansion plans and empower local economies."

Osman Yılmaz, Group CFO of Aydın Group, emphasised the deal's pivotal role in enhancing A101's capital structure and bolstering its long-term growth strategy in Türkiye.

Yılmaz outlined A101's focus on developing a more efficient, tech-driven retail platform, which includes diversifying store formats, strengthening digital channels, and investing in logistics and energy efficiency.

He views the collaboration with Emirates NBD and DIB as a key step towards deepening A101's engagement with leading financial institutions in the GCC region.

Hitesh Asaporta, CEO of Emirates NBD Capital, remarked on the transaction's significance, noting it as a testament to the growing confidence in and support for Türkiye's corporate sector.

He pointed out that the financing would enable A101 to further expand its store network and develop new logistical hubs, thereby reinforcing the commitment to supporting leading clients in Türkiye's market.

Ali Ahmad, Chief of Investment Banking at DIB, commented on the facility's ability to offer scalable Islamic financing solutions for leading companies. He praised A101's robust operational model and expanding consumer base, affirming DIB's support for their expansion efforts.

A101 is among Türkiye's largest discount retailers, with a vast network of over 13,200 stores nationwide. It employs over 70,000 people and has been rapidly growing its e-commerce platform.

The retailer is committed to providing an environmentally conscious shopping experience, offering high-quality products at competitive prices. Through this expansion, A101 continues to make shopping accessible and affordable for all, strengthening its position in the Turkish retail market.

This financing deal between A101, Emirates NBD, and DIB reflects a strong collaboration aimed at driving growth and innovation in the retail sector in Türkiye.