Murabaha, also known as cost-plus financing, is an Islamic financing structure in which the seller and buyer agree to the cost and mark-up of an asset.
RGE, a Singapore-headquartered multinational group of resource-based manufacturing companies, has closed a three-year, US$1 billion ($1.34 billion) sustainability-linked loan (SLL) for its sustainable agribusiness group, consisting of Asian Agri and Apical.
The SLL includes a US$150 million Murabaha term facility that is compliant with Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) standards, which marks RGE’s inaugural sustainability-linked Islamic financing, says the group on Jan 24.
