SINGAPORE: Malayan Banking Bhd (Maybank) and Singapore-based RB Capital inked a S$260mil (RM751mil) Islamic financing deal, one of the biggest Islamic deals in Singapore.
The landmark deal involved a 442-room mid-tier Holiday Inn Express Singapore Clarke Quay as the underlying security.
Hospitality-related assets are not typical in Islamic financing, which makes this the first to be done in a secular country.
“The deal is competitive to conventional financing. In addition, it provides RB Capital with the ability to further explore Islamic-compliant investments and financing regionally,” said RB Capital’s chief executive officer Kishin RK in a statement yesterday.
“We are delighted to have worked with Maybank to execute a first-of-a-kind deal in Singapore to meet the growing demand from Islamic investors,” he added.
RB Capital is a privately owned company focused on the acquisition and development of hospitality, commercial and healthcare properties across the Asia Pacific region.
“As the largest Islamic banking player in Asean, Maybank has the deep expertise to structure financing deals tailored for our customers’ needs, and help them to tap into opportunities and new sources of funding,” Maybank Singapore CEO Lim Hong Tat said.
“We are proud to partner RB Capital in making this progressive mark on Singapore’s Islamic banking landscape. We are also thankful for the confidence they have placed in us to structure this deal for them,” Lim said.
The bank is continuously looking at growing its Islamic banking business in the region, especially in Singapore and Indonesia, which each currently accounts for about 5.0% of Maybank Islamic’s revenue.
“The retail market in Singapore is very competitive but we have managed to make inroads by focusing on serving the community and offering Islamic financing options for our various products, as well as facilitating cross-border transactions.
“Although the Islamic finance market here is relatively small, we plan to continue growing this market as long as we are able to create value for our customers and generate good returns,” Lim said.
Maybank Group’s Islamic banking business in 2015 surged 20.4% in total income compared to the year before. – Bernama