National Commercial Bank Expands Funding with the Largest Murabahah Facility in Saudi Arabia’s Banking Sector

Saudi Arabia-based National Commercial Bank (NCB) has raised a USD 1.05 billion three-year, unsecured Murabahah facility, according to a local media report.

Structured to allow flexibility to the lender, this dual tranche transaction is the first-of-its-kind, in line with new Shariah standards set out by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).

NCB’s debut international syndicated Murabahah facility is the largest raised by a bank in Saudi Arabia and reflects an expansion of NCB’s funding strategy.

HSBC and Mizuho were lead arrangers, book-runners and joint coordinators for the transaction, which also garn...