Shariah finance costs cheaper than Eurobonds for AK BARS

Shariah finance costs: Raising funds via Sharia-compliant forms of finance may be even cheaper than using traditional channels, according to accounts published by the Russian AK BARS bank, the first to have adopted Islamic banking standards. The accounts indicate that, for the first half of 2014, the $100 million that the bank obtained using its Murabaha financing instrument had an annual cost of 5.37% compared to the 8.75% and 8% rates it paid on its two Eurobonds. rbth