AK BARS Bank has successfully allocated funds raised under its Syndicated Murabaha Islamic financing deal, in the amount of 60 million USD. The Master Agreement was signed in September 2011 for the period of 1 year, and is the first public international Shariah-compliant deal in Russia.
Citi and the Islamic Corporation for the Development of the Private Sector (ICD), a member of the Islamic Development Bank Group, acted as exclusive Joint Lead Arrangers of and Bookrunners for the deal. The Eurasian Development Bank acted as Mandated Lead Arranger. Citi Islamic Investment Bank E.C. acted as Documentation Agent, and Citibank International Plc as Investment Agent.
The funds raised have been used to finance a priority service and transport infrastructure development project in the Republic of Tatarstan, in preparation for Universiade (the World University Games) 2013, which will be hosted by the city of Kazan.
These investments aimed to develop the interregional air travel system and stimulate the domestic tourism and business activity of the city.
In January AK BARS BANK’s Islamic deal was awarded the title of «Deal of the Year 2011 in Europe» by the Islamic Finance News, the leading specialized online journal for the Islamic finance market.
The innovative character and the uniqueness of the transaction were the main criteria for the award of the title «Deal of the Year 2011 in Europe».
The deal was the first of its type in the CIS, and opened the doors to the Islamic finance market for Russia.
This award proves that «AK BARS» BANK is the leader and pioneer in the development and implementation of alternative funding sources both in the Russian market and across the CIS.
— «In spite of the severe market situation and tight time schedule, AK BARS BANK managed to close the deal on beneficial terms» — noted Robert Minnegaliev, the Chairman of the Board of Ak Bars Bank. — This Shariah-compliant deal created a real opportunity for the diversification of fund sourcing. This sets a new benchmark in the CIS and a significant precedent for Russian banks.«
The «Deal of the Year» Award is granted annually for successful results in the area of Islamic finance. The Awards Ceremony will be held in Dubai in February 2012.
AK BARS Bank (open joint-stock company) was registered in the Central Bank of Russia and successfully operates on the financial market of Russia since 1993. AK BARS Bank is a universal bank and develops corporate, retail and investment businesses.