Emirates Islamic Finalises US$500 Million Shariah-Compliant Financing Facility

Emirates Islamic, a leading Shariah-compliant bank in the UAE, has successfully secured a US$500 million syndicated financing facility, marking a significant milestone as the first Shariah-compliant financial institution to achieve this. The three-year term financing, structured as a Commodity Murabaha term financing facility, aligns with the Shariah principles outlined by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). This strategic move is aimed at bolstering the bank's balance sheet, thereby enhancing its capacity to support both its clients and its strategic growth objectives.

The successful closure of this facility not only underscores Emirates Islamic's robust growth strategy and financial health but also reflects the confidence the market holds in the bank's future prospects. Farid AlMulla, Chief Executive Officer of Emirates Islamic, expressed his satisfaction with this achievement, emphasizing the bank's commitment to innovation in Islamic banking and to contributing to the UAE's economic development through ethical banking practices.

Mohammad Kamran Wajid, Deputy Chief Executive Officer of Emirates Islamic, highlighted the bank's two-decade-long dedication to providing exceptional banking services. He noted that this new Shariah-compliant financing facility is set to boost customer confidence further and support the bank's expansion plans. The facility was coordinated and managed by Emirates NBD Capital Limited, HSBC Bank Middle East Limited, and Standard Chartered Bank, acting as global coordinators and mandated lead arrangers and bookrunners.

In addition to this financing facility, Emirates Islamic has been at the forefront of promoting liquidity in the local currency Sukuk market. In 2023, the bank issued an AED 1 billion public Sukuk, which was met with overwhelming interest, being oversubscribed 2.5 times. This response highlights not only the strength of the Dirham Sukuk market but also the confidence global Shariah-compliant investors have in the local currency market.

Through these strategic initiatives, Emirates Islamic continues to solidify its position as a pioneer in Shariah-compliant banking, driving innovation and supporting the UAE's economic growth. The bank's efforts in offering innovative Shariah-compliant products and services are setting new benchmarks in ethical banking standards while contributing significantly to the Islamic finance sector.

With inputs from WAM