Dubai: Dubai Islamic Bank (DIB) and Metito, the leading provider of intelligent water management solutions in emerging markets, have signed a 10-year Islamic financing agreement for Dh240 million.
This is Metito’s first Islamic finance agreement and DIB’s debut partnership with a private company working in the water and waste-water industry.
The transaction is another step in expanding Islamic finance into sectors and institutions previously catered to by conventional banking.
“In our view, primary infrastructure development projects are the cornerstone of sustainable growth, a key element of the strategy of the country. DIB has always played a pivotal role in leading and facilitating such transactions and is linked to many landmark deals with some of the top corporates across the UAE and beyond,” Dr. Adnan Chilwan, Group CEO of Dubai Islamic Bank.
“Metito’s business model and their long-term strategic vision, ties in well with DIB’s own growth plans,” he added.
The long-term attributes of Islamic finance make it ideally suited for the sustainable nature of the water sector, with many projects lasting decades and requiring on-going finance at competitive rates.
“The water sector is very cost intensive, and the term length of the projects generally can be prohibitive for many financers, but, by approaching the deal with an innovative and solution-focused mindset, DIB turned this challenge into an opportunity,” said Mutaz Ghandour, chairman and CEO of Metito.
(Gulf News Banking / 28 October 2015)---
Alfalah Consulting - Kuala Lumpur: www.alfalahconsulting.com
Islamic Investment Malaysia: www.islamic-invest-malaysia.com