Friday, November 18, 2011

INDONESIA - FINANCE - Mandala Finance gets US$25 million syndicated Islamic loans

JAKARTA: Mandala Finance secured a syndicated loan of US$25 million from four foreign banks, to support sharia-based financing for motorcycle in 2012.
 
The company enjoys the 4-year loan under murabaha contract, from Islamic Corporation for the Development of Private Sector (ICD), The Islamic Corporation for Insurance and Export Credit (ICIEC), Kuwait Finance House Bhd (KFH), and Unit Investment Fund (IUF) of Islamic Development Bank.  (source)
 
Mandala Finance will use the loan to finance new motorcycles based on sharia principle in 2012, said President Director Mandala Finance Harryjanto Lasmana. The sharia unit of the company has been contributing 20% of total financing disbursement.
 
“Through September, sharia financing reached IDR612 billion, growing 20% from the same period last year. We expect sharia financing will reach IDR700 billion this year,” he said today.
 
The company, he added, will boost sharia financing up to IDR1 trillion, supported by loans from sharia banks other than ICD such as PT Bank Syariah Mandiri, PT BRI Syariah, PT Bank Muamalat Tbk, and Bank CIMB Niaga Syariah. 
 
The loan facility continues the partnership between Mandala Finance and ICD in 2008, said ICD Director Basel Awni Sharif Al-Hag Issa. Contributing US$10 million, ICD plays as the leader of the syndication.
 
The Jeddah, Saudi Arabia-based lender is focusing on giving credit under the sharia principles to small and medium businesses that work on agribusiness, bio-technology, education, financial service, manufacture, healthcare, etc. (t04/ags)
 

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