Emirates NBD in $325m syndicated loan deal

Dubai: Emirates NBD, the UAE's largest bank, said it has jointly arranged with several foreign banks a syndicated loan of $325 million (Dh1.19 billion) for Greece-based Black Sea Trade and Development Bank.

Bayerische Landesbank, Intesa Sanpaolo and Sumitomo Mitsui Banking Corporation Europe Limited were the other mandated lead arrangers for the multi-tranche syndicated term loan facility.

"Despite difficult market conditions, the transaction was extremely well received in the market, with 27 banks joining the mandated lead arrangers. The transaction achieved an impressive oversubscription of 261 per cent over its launch amount of $90 million to close at $325 million," according to a statement.

The facility comprises a $85 million, one-year tranche and a $240 million, two-year tranche. It also includes a third two-year tranche of 20 million euros. The third tranche was not syndicated to the market.

The facility pays a margin of 70 basis points per annum for the first tranche and a margin of 100 basis points for the second tranche. Proceeds will be used by Black Sea Trade and Development Bank to refinance its $150 million syndicated term loan facility dated of November 22, 2007 and for general corporate funding purposes.

The deal was signed on Thursday in the Greek city of Thessaloniki.

"This transaction represents the first time that Emirates NBD has acted as an arranger on a financing for a multilateral development bank," said Mohammad Kamran Wajid, global head of financial institutions at Emirates NBD.

He said the deal highlights the fact that the markets are still willing to absorb transactions with good fundamentals despite the prevailing global uncertainty.