Al-Baraka Turk, the Turkish subsidiary of Bahrain Al-Baraka Bank has launched the syndication of a $150m loan refinancing.

The bank has appointed Bahrain’s Arab Banking Corporation and the UAE’s Emirates NBD and Noor Islamic Bank, along with the UK’s Standard Chartered, to lead the syndication. The deal will refinance a $240m loan that was put in place in September last year.

Banks will be able to participate in either dollars or euros, and the loan will have a profit rate of 150 basis points above the London interbank offered rate (Libor).

According to a source close to the loan, banks have been given until 27 July to respond with indications of how much they want to commit to it. “The current deal doesn’t mature until September, but with things expected to slow down for the summer, they were keen to go out to the market early to make sure the new loan was in place,” says one banker close to the syndication. The new loan will be structured as a sharia-compliant Murabaha deal.

Al-Baraka Turk is one of the country’s Islamic banks, known as participation banks because of the secular constitutional.