UAE’s Ajman Bank Agrees $155m Syndicated Islamic Loan

Ajman Bank, the United Arab Emirates’ lender, has secured a $155 million syndicated Islamic loan for general business purposes, according to a statement from the arranger of the deal on Sunday.

Dubai-based Noor Bank acted as the sole arranger and bookrunner for the deal, while Emirates Islamic Bank, First Gulf Bank, United Arab Bank and Warba Bank participated in the loan.

The deal consisted of a hybrid murabaha and wakala structure with a two-year lifespan, Noor said in the statement.

Murabaha is a cost-plus-profit arrangement where one party agrees to buy merchandise for another, which promises to buy it at an agreed mark-up. In wakala, one party acts as agent for another.