Globex Raised Funds with Islamic Bank
Russia’s Globex announced Tuesday it completed the deal of raising a loan with Dubai Islamic Bank. For the credit institutions of Russia, it is the first deal made under Murabaha.
Globex bank announced yesterday it raised an annual loan with Dubai Islamic Bank worth $20 million. It was the German branch of CCH International that assisted the Russian bank in this undertaking.
As the Sheriat forbids the Islamic banks to lend money with interest accrued, they apply the Murabaha procedures, funding trading operation of clients. In this context, the deal clinched by Globex could be called a tied quasi-loan. The division of CCH International will finance the sales turnover of the Globex client via its own agency, while Globex issued a standby letter of credit, guaranteeing that the liabilities of its client will be finally executed.
It took around a year to execute the deal, said Globex Vice President Alexey Ivanov. The parties didn’t disclose the worth of the borrowing, but said the deal was the medium-term.
www.kommersan.com
All the Article in Russian as of Aug. 30, 2006
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