Kuwait International Bank launches $100 mln debut Islamic loan

Kuwait International Bank has invited banks to participate in a $100 million debut Islamic loan to fund its general funding activities and the marketing of the deal should close by early August, it said in a statement. The bank will raise funds with a three-year lifespan and will pay a margin of 120 basis points over the London interbank offered rate (Libor). The lender will use a murabaha-structured facility, which is a cost-plus-profit arrangement, one of the most popular formats for structuring Islamic loans. Arab Banking Corporation and ABC Islamic Bank are the mandated lead arrangers for the transaction.