The National Commercial Bank (NCB) was recently declared winner of the "Best Islamic Project Finance Deal 2013 Award" by Euromoney for being one of the main organizers and for its participation with major portion of the total finance amounting to $1.2 billion for the expansion project of Prince Mohammed bin Abdulaziz International Airport in Madinah.
This is the first financing transaction in the world for an airport project structured in accordance to the Islamic law with the partnership of the public and private sectors. NCB is considered as the largest contributor to the finance deal for this megaproject, the funding of this Shariah-compliant transaction is primarily based on the assets.
Winning the award is also seen as a demonstration of NCB’s ability and its excellent standing in the management and delivery of financing programs that are compatible with the provisions of Islamic law.
“The award reaffirms the advanced leading position of the NCB in the field of launching various Islamic finance products and services. It also establishes the outstanding reputation of the bank among the experts in the financial and economic sectors,” said AlSharif Khalid AlGhalib , Senior Executive Vice President, Head of the NCB Corporate Banking Sector.
Prince Mohammed bin Abdulaziz Airport Project is regarded as the first fully privatized airport project in Saudi Arabia. As the finance transaction is launched with an Islamic structure, NCB is funding the project under the Privileged Debt and the Phase Financing Repayable by Shares. The annual capacity of the new airport building will be eight million passengers when it starts operation in 2015. The operating rights were awarded to a private consortium of companies for 25 years.
Mansoor Durrani, Head of the Project Finance at NCB, received the "Best Islamic Project Finance Deal Award” during a ceremony held in London last month.
The bank earned the award for its leading and financing role in offering Islamic project finance deal facilities for the expansion project of Prince Mohammed bin Abdulaziz International Airport in Medina.
The award confirms the bank’s leadership in managing and introducing innovative Islamic finance solutions for megaprojects.
AlGhalib further said “once again the award received confirms NCB’s leadership in providing Shariah-compliant financing solutions for megaprojects which supports the huge infrastructure projects currently implemented in Kingdom.” He pointed out that “NCB is a strategic financier for many major companies and megaprojects in the industrial, aviation, petrochemicals, mining, energy, real estate and trade sectors.”
NCB plays a key role in the development of the banking industry by continuing to provide innovative financial services and taking the initiative to offer the necessary solutions to meet the ever-changing necessities.
Selecting NCB for the award is an indication of high-level professionalism achieved by the Bank in this area and its outstanding record in the Islamic banking and financial services sector. – SG