Ahli United Bank (“AUB”) has secured a USD1.1 billion sustainable Murabahah financing facility. The dual-tranched facility is the first of its type raised by a financial institution worldwide, according to the bourse filing. The three-year facility was upsized to US$1.1 billion from its original amount of US$750 million due to high demand.
One tranche represents a facility compliant with the Sharia standards set out by the Accounting and Auditing Organization for Islamic Financial Institutions and the other tranche represents the traditional commodity murabaha facility structure historically used in the market.
The pricing of the facility was linked to three Key Performance Indicators (KPIs), relating to green financing, social housing financing and ESG governance integration, with each KPI based on specific Sustainability Performance Targets.
Norton Rose Fulbright advised HSBC Bank Middle East, HSBC Saudi Arabia and 10 other financial institutions, as mandated lead arrangers on the murabaha financing completed on 3 July. The team was led by Dubai and Riyadh-based, banking and finance partner Robin Balmer (pictured left) and Dubai-based senior associate Seyavash Rahnema (pictured right), supported by trainee James Tobin and senior paralegal Jordan Fry.