(Sukuk.net - Bahrain Tribune) Bahrain-based Islamic wholesale investment bank, Elaf Bank yesterday announced the closing of a two-year murabaha financing facility extended to the Shamil Bosphorus Modaraba sponsored by Shamil Bank and Turkish partners in excess of $450 million to undertake projects in Istanbul and on the Turkish coast.

"Elaf Bank is keen on working closely with Islamic banks in the region and develop strong relationships with the view of syndicating large transactions in the future whether it be sukuk or equities. The effort is also to raise the overall profile of this niche industry that is becoming mainstream in the region. Shamil Bank of Bahrain is an institution with which we intend to develop such a relationship and we look forward to further join hands on interesting transactions." said Dr. Jamil El Jaroudi, Chief Executive Officer of Elaf Bank.

"Shamil's Bosphorus Modaraba is a unique, high-return investment vehicle that provides our customer base in the region with the opportunity to capitalise on the growth of the Turkish economy. We are pleased to partner with Elaf Bank, Bahrain to further develop the Beylikduzu real estate project, a key investment within our Modaraba," said Faisal M. Al-Alwan, Chief Executive Officer of Shamil Bank.

"Turkey is undoubtedly one of the emerging markets which we have on our radar and through our shareholders a presence was established there a couple of years ago. We are definitely entertaining more deals in that market. As far as this deal is concerned, tenure, returns, risk, and security coverage were all carefully assessed and found to be acceptable to close it successfully. We know Shamil and the Turkish partners and would pursue potential joint ventures in that market soon if profitable." said Ahmad Tayara, the General Manager for Investment Banking at Elaf Bank.

The Murabaha was extended in connection with a single investment within the Modaraba, namely the Beylikduzu real estate development project. The use of proceeds would allow the Modareb and its Turkish partners to acquire an additional plot of land adjacent to the existing plot, straighten any shape irregularities that existed previously, and have full access to one additional road making the final plot a perfect rectangle surrounded by three roads one of which is a major highway in Istanbul, as well as enhancing its sale value.

"Overall, we are projecting a return of investment of close to 60 per cent for the Bosphorus Modaraba, based on a conservative mix of assets catering for different market niches, activities and geography," said Abdul Hakim Khalil Al-Mutawa, Head of Private Banking, Shamil Bank.

Elaf bank established in June 2007 with a paid-in capital of $200 million and an authorised capital of $500 million offers a range of investment banking services to corporate clients, institutional investors, and high net worth individuals encompassing advisory services focused on the debt and equity capital markets, as well as asset management services.

Its shareholders base include the International Leasing & Investment Company, AREF Investment Group, Kuwait Investment Company owned largely by the Kuwait Investment Authority (the investment arm of the Kuwaiti government), Qatar Islamic Bank, Soukuk Holdings, and the Islamic Corporation for the Development of the private sector, a member of the Islamic Development Bank Group.

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