Abu Dhabi: First Gulf Bank PJSC (FGB), a leading bank in the UAE, has been mandated by Mercuria Energy Trading Pte Ltd, one of the world’s largest independent energy traders, as one of 11 international Bookrunning Mandated Lead Arrangers (BMLAs) to arrange its Dh1.84 billion ($500 million) Syndicated Revolving Credit Facilities (RCF).
FGB said that the bank was the only financial institution from the GCC chosen to arrange these (RCF)s, comprising a 364-day Dh1.3 billion ($360 million) facility and a three-year Dh515.2 million ($140 million) facility.
The banks pointed out that the signatory to the final loan documentation relating to the RCF be on November 30th, 2012.
Dr Waddah Taha, Chief Analyst and Economist at Zarouni Group, told Gulf News that this is “an extraordinary deal”.
“This is quite superb. This reflects that the bank has high cash and liquidity. The facility will be reflected in profits to the FGB as of the fourth quarter of 2013,” said Dr Taha.
He added: “This is a quantum leap as the FGB always finds means to invest and to finance projects or companies which are beyond any local bank’s expectations.”
Andre Sayegh, CEO of FGB said the mandate is significant and important to achieve mutual goals for both FGB and Mercuria Energy, a Geneva based company which has invested in energy infrastructure to produce alternative energy and upstream as well as refining and blending assets.
Solid financial support
Mercuria Energy usually receives financial support for its trading activities and energy assets acquisitions from many of the major financial institutions active in commodities businesses financing. The company enjoys the solid financial support of a pool of over 40 banks, including an aggregated credit line for business expansion of in excess of Dh55.2 billion.
According to FGB, the international transaction road show kicked off in Dubai on October 3 ending in Shanghai on October 10.
“Closing this transaction is a direct result of the bank’s solid foundation. It goes in line with our business strategy, which clearly reflects the high level of confidence that investors and peers have in our bank and its ability to provide sustainable value to all FGB stakeholders,” said Sayegh.
