İş REIT signs Islamic financing

İş REIT signs Islamic financing

Published: September 2, 2012

Turkish real estate investor secures US$50mn in QInvest-led deal.

İş Gayrimenkul Yatirim Ortakligi (İş REIT), a Turkish real estate investment trust, has struck a US$50mn Islamic financing agreement with a group of GCC banks.

The company has signed a two-year Murabaha facility priced at LIBOR +250 basis points. Announcing the funding, CEO Turgay Tanes said the facility "is the most suitable form of financing for our business since it is one of the most widely used instruments used by banks within Islamic finance".

Qatari investment bank QInvest acted as sole bookrunner and structuring adviser on the deal. Qatar Islamic Bank was the initial mandated lead arranger and investment agent, while Barwa Bank, First Gulf Bank, Mashreq Bank were mandated lead arrangers.

İş REIT has a portfolio valued at some US$920mn and a market capitalisation on the Istanbul Stock Exchange of US$431mn as at August 26, 2012.