Sharjah-based United Arab Bank (UAB) has signed a three-year, $100m syndicated Islamic finance facility, known as a murabaha.

The loan is the first time UAB has raised a sharia-compliant syndication.

Local bank Al-Hilal is the mandated lead arranger (MLA) and bookrunner on the transaction, while Sharjah Islamic Bank and Bahrain-headquartered Arab Banking Corporation also acted as MLAs.

National Bank of Kuwait participated as a lead arranger.

UAB last tapped the market at the end of 2013, when it closed a two-year, $250m syndicated loan with 12 lenders.

The bank reported a 35 per cent increase in net profits over the course of 2013 and a 34 per cent year-on-year growth in profits for the first three months of 2014.

Speaking to MEED in March, the bank’s CEO Paul Trowbridge said the rising profits were in part driven by the UAE’s expanding retail banking arm, including its mortgage business.

He added that UAB did pull back from real estate lending from the middle of last year due to concerns about the rapidly rebounding property market in the country.