Istanbul The Turkey Wealth Fund (TVF) completed its first international Islamic financing transaction by signing a murabaha financing agreement worth $100 million with Sharjah Islamic Bank (SIB).
According to the announcement on TVF’s website, TVF realized its first Islamic financing transaction with the $100 million murabaha financing agreement with SIB, which has a term of 3 years.
The transaction, which bears the distinction of being the “first mutual murabaha financing provided to a sovereign wealth fund in the world,” reinforces the confidence of international markets in the Turkish economy following the record demand for the eurobond issuance completed in February.
Dogan Investment Bank acted as the financial advisor and coordinator in the transaction.
“This transaction was carried out for the first time on behalf of TVF” Arda Ermut, the CEO of TVF, emphasized that the transaction was carried out for the first time on behalf of TVF in a statement provided by Dogan Investment Bank.
Ermut stated, “The transaction stands out as part of our mission to support improvement and deepening in financial markets and our vision of sustainable development. As TVF, we continue our efforts for Turkey to be a significant player in Islamic finance, diversification of instruments in this field, and the establishment of a fruitful cycle. We sincerely thank all stakeholders who contributed to the process.”
Mohamed Abdalla, the CEO of SIB, expressed their satisfaction with supporting Turkey by providing bilateral murabaha financing to a sovereign wealth fund for the first time worldwide.
Abdalla commented, “We believe that this collaboration will significantly contribute to the deepening of international Islamic financing opportunities in Turkey. It also demonstrates our commitment to responding to the financing needs of strategic institutions in countries like Turkey.”
Hulusi Horozoğlu, the CEO of Dogan Investment Bank, highlighted their pride in facilitating the significant financing between TVF and SIB.
source: aa.com.tr/ prepared by Melisa Beğiç