As financial services adhering to Islamic principles continue to gain popularity in Asia, Japanese financial institutions have started offering such products in Muslim countries in the region. Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking have organized a syndicated loan of $184 million dollars for a maritme shipping company affiliated with the Brunei government.
The funds will be used to expand the company’s liquefied-natural-gas carrier fleet. But to comply with Sharia law, which prohibits the charging of interest, the loan will be made to a special-purpose company that will purchase LNG carriers and lease them to the shipping company. Instead of interest, the lenders will receive leasing fees………………………………………..Full Article: Source