Egyptian marine services firm Maridive and Oil Services has obtained a $150 million syndicated loan using an ijara (Islamic leasing) structure, the first of its kind in Egypt, the legal advisor on the deal said on Wednesday. The Maridive loan is considered one of the largest in the country's challenging banking sector, according to law firm Crowell & Moring which advised on the transaction. The deal could give assurance to the market that ijara is applicable in Egypt, encouraging firms to use it for other types of transactions including sukuk, or Islamic bonds, a growing funding source for both corporate and sovereign issuers. Egypt's Islamist-led government is keen to develop Islamic finance and earlier this month President Mohamed Mursi approved a law allowing the state to issue sukuk. An earlier draft of that law triggered a dispute with Al-Azhar University, the country's top religious authority, casting doubts over which Islamic instruments would be allowed.
