Business | Banking
ADCB okays Dh800m credit to Gulf Capital
Abu Dhabi Commercial Bank (ADCB) has approved a medium term revolving credit facility of Dh800 million to Gulf Capital, a leading private equity firm in the Gulf, to help fund its growing pipeline of private equity transactions.
- Staff Report
- Published: 00:02 May 26, 2008
Dubai: Abu Dhabi Commercial Bank (ADCB) has approved a medium term revolving credit facility of Dh800 million to Gulf Capital, a leading private equity firm in the Gulf, to help fund its growing pipeline of private equity transactions.
Gulf Capital is a leading alternative asset manager focused primarily on private equity investments and buyouts in the Gulf Cooperation Council (GCC).
It is one of the highest capitalised investment companies in the UAE with an initial paid-up capital of $330 million.
Gulf Capital has a widely diversified shareholding base comprising over 250 of the most prestigious institutional and individual shareholders in the Gulf region. With a view to enhancing returns on its shareholder equity, Gulf Capital has sought funding to leverage its current debt-free balance sheet.
ADCB chief executive Eirvin Knox said, "The bank won the transaction amidst competition from multinational banks. ADCB had enjoyed a strong relationship with Gulf Capital since its inception two years ago and this helped us to achieve a better understanding of the client's needs and the risks associated with the transaction."
Gulf Capital CEO Dr Karim Al Solh said, "The speed of response of ADCB and the innovation and flexibility embedded in the current acquisition financing facility made ADCB the clear choice for Gulf Capital. The medium-term revolving structure permits us to draw down the loan facility when we find suitable investments and allows us to boost Gulf Capital's overall return on equity."
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