Top Azerbaijani bank to seal major Islamic banking deal

16 November 2012 19:29 (UTC+04:00)

The International Bank of Azerbaijan (IBA) is completing a transaction to draw $150 million as a syndicated Murabaha from UAE banks, IBA Islamic banking department head Behnam Gurbanzade told Trend news agency.

"We will finish the road show of our work by late 2012," he said. "We will sign the loan agreement during the first half of 2013 and attract these funds to be spent to finance the trade."

He noted that the bank will also attract $ 1.5 million from the Islamic Bosnia Bank by late 2012.

"This is a trial deal," he said. "We are just starting to work with the bank. Moreover, we will draw $ 15 million on a new product 'wakale deposit' from the Islamic Corporation for Private Sector Development (part of the IDB Group). These funds will be used to finance small and medium businesses."

He stressed that the bank's assets on Islamic financing, which currently hit $58 million, may reach $ 80 million by late 2012.

"Today, the bank has financed the projects worth 65 million in accordance with the Sharia rules," Gurbanzade said.