Turkey’s Bank Asya has appointed institutions, including Bahrain’s Arab Banking Corporation, Dubai’s Noor Islamic Bank and the UK’s Standard Chartered, to arrange a $75m loan.

The deal is a one-year Islamic finance loan and is priced at 2.25 per cent, with fees of 1.15 per cent. Banks will be invited to contribute either in dollars or euros to the deal.

Bank Asya is the largest Islamic bank in Turkey. The deal is structured as a currency murabaha, which means a bank buys a currency for a client, which then buys it back from the bank at a predetermined profit rate.

The arrangers on the $75m fundraising have already begun approaching other banks to help fund the deal.