RAKIA Sukuk (continued...) - Islamic Finance News
RAKIA Sukuk (continued...) - Islamic Finance News
RAKIA Sukuk (continued...) - Islamic Finance News
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TERMSHEET<br />
FACILITY<br />
BTA Bank Syndicated Wakalah<br />
Syndicated Wakalah restricted facility with commodity Murabahah fi nancing<br />
PURCHASER<br />
BTA Bank<br />
FACILITY AMOUNT<br />
US$250 million<br />
PRINCIPAL ACTIVITIES<br />
BTA Bank is a leading commercial bank in Kazakhstan, offering a full range of traditional banking<br />
products and services. Its business areas include corporate banking, retail banking, trade fi nance,<br />
credit and debit card services, currency and securities trading, trust activities, international banking,<br />
pension fund services and insurance activities.<br />
As at the 1 st April 2007, its assets increased by 18.5% since the beginning of the year and made up<br />
US$19.4 billion, growing BTA’s market share to 24.6% in terms of assets. The main growth was due to the<br />
growth of the bank’s loan portfolio, which made up 66.5% of the assets at the end of the fi rst quarter of<br />
2007. Loans provided to SMEs and retail loans made up 40% of the whole loan portfolio.<br />
BACKGROUND<br />
The transaction was launched for US$150 million with syndication being limited to a group of investors<br />
primarily in the Middle East and Malaysia. It was signed on the 10 th July 2007. The syndication was<br />
successful, having closed oversubscribed. As such, BTA Bank elected to increase the facility amount<br />
to US$250 million.<br />
MATURITY<br />
Two years<br />
INITIAL MANDATED<br />
LEAD ARRANGERS<br />
Abu Dhabi <strong>Islamic</strong> Bank, Barclays Capital (the investment banking division of Barclays Bank) and<br />
CIMB Bank. The initial mandated lead arrangers were joined at the senior stage by Abu Dhabi<br />
Commercial Bank.<br />
LEAD ARRANGERS<br />
Arab Bank, Commercial Bank of Kuwait, Dubai Bank and ICICI Bank UK<br />
ARRANGERS<br />
Burgan Bank of Kuwait and Maybank<br />
MANAGERS<br />
National Bank of Dubai, National Bank of Oman, The Saudi National Commercial Bank and<br />
The Arab Investment Company<br />
BOOKRUNNER<br />
Barclays Capital<br />
INVESTMENT AGENT/WAKEEL<br />
Abu Dhabi <strong>Islamic</strong> Bank<br />
SHARIAH ADVISER<br />
Abu Dhabi <strong>Islamic</strong> Bank<br />
DOCUMENTATION<br />
Master Murabahah agreement and investment agency agreement<br />
PURPOSE OF SYNDICATION<br />
To fi nance BTA Bank’s <strong>Islamic</strong> trade fi nance activities<br />
WAKALAH STRUCTURE<br />
The commodity Murabahah structure of the facility is standard and well-tested as a fi nancing tool.<br />
Participants will access the facility via a Wakalah agreement, which is a standard type of agency<br />
agreement that refl ects the “facility agent” concept closely.<br />
RATINGS<br />
BTA Bank has a long-term foreign currency rating of Ba1 from Moody’s and a credit rating of BB from<br />
Standard & Poor’s.<br />
www.<strong>Islamic</strong><strong>Finance</strong><strong>News</strong>.com<br />
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