Arcapita Bank has mandated Bayerische Hypo-und Vereinsbank (HVB), Standard Bank Plc and WestLB AG, London as mandated lead arrangers to arrange a five-year multi-currency (US dollar, euro, sterling) murabaha-backed sukuk. Standard and WestLB will act as bookrunners with HVB acting as facility agent.
Boubyan Bank, Bumiputra-Commerce Bank, Natexis Banques Populaires, RZB and The Arab Investment Co have joined as lead arrangers and sub-underwriters ahead of the launch of the general syndication. The mandated lead arrangers and lead arrangers have underwritten the sukuk in full. Banks are being invited to participate in this international offering.
Arcapita is headquartered in Bahrain and operates under an investment banking licence granted by the Bahrain Monetary Agency.
The proposed pricing is three-month Libor + 175bp.
An SPV structure includes full recourse to Arcapita. It is a freely transferable instrument in accordance with a mechanism approved by Arcapita’s shari ‘ah supervisory board.
The murabaha-backed sukuk is a particular form of sukuk issue, the proceeds of which are used for the sale and purchase of assets via a series of commodity murabaha transactions.