COMMODITY firm Olam International said on Monday it has closed an $115 million Islamic loan facility.

The three-year syndicated commodity murabaha may be increased to $150 million under the agreement, Olam said in a statement.

The Islamic Bank of Asia, a unit of DBS Group , acted as lead arranger and bookrunner. Malaysia'a Maybank and Al Rajhi Banking and Investment Corp's Malaysian unit were also lead arrangers.

In a murabaha deal, a financier buys a commodity and sells it to the customer at a higher price, complying with Islam's ban on interest payments.

A number of Singapore corporates led by property firms are turning to Islamic debt markets to raise funds as the conventional loan and capital markets have become expensive due to the global credit crisis.