Tuesday, 2 August 2011

NBAD & ADIB execute first islamic REPO | Al Bawaba

The National Bank of Abu Dhabi (NBAD), the Number One Bank in the UAE, and Abu Dhabi Islamic Bank (ADIB), a top-tier Islamic financial services group, TODAY executed the GCC’s first ever Islamic equivalent of the conventional Repo product, a collateralized Murabaha transaction, opening the gateway to an alternative method of liquidity management in the Islamic banking sector.

Together NBAD and ADIB concluded a one week maturity deal valued at US$20 million against Malaysian and Abu Dhabi Government-Related Entity Sukuk.

NBAD and ADIB jointly embarked on this initiative to formalise the Master Collateralised Murabaha Agreement (MCMA), thus enabling Islamic banks to utilise their holdings of sukuk.

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