Dubai: Gulf Finance Corporation (GFC), the wholly owned small and medium enterprise (SME) financing subsidiary of Shuaa Capital, has closed a Dh500 million senior secured term loan facility.
The 42-month facility, which includes an unfunded Dh50 million standby letter of credit, is one of the largest syndications to take place in the UAE during the past twelve months. It will be used to fuel GFC’s growth strategy in the UAE and Saudi Arabia.
GFC will deploy the facility to further penetrate the SME growth finance segment in both countries, which historically remains underserviced. The facility is also expected to improve SHUAA’s overall business performance and will optimise the Group’s funding and cost structure.
Abu Dhabi Commercial Bank (ADCB) acted as initial mandated lead arranger and bookrunner on the syndication and was joined by a number of leading banks, including National Bank of Oman as mandated lead arranger, United Arab Bank as lead arranger and National Bank of Fujairah, Blom Bank France and Bank of Baroda, each as Arranger.
“The Dh500 million facility provides a stable long term source of funding for Gulf Finance to meet its objectives of providing growth finance for entrepreneurs and small and micro businesses. It reflects the improved financial position of GFC, one of the longest established lenders to the SME sector in the UAE, and the Shuaa Group overall. This is an important milestone for Gulf Finance’s future expansion and the overall earnings power of the Group,” said Shaikh Maktoum Hasher Al Maktoum, Executive Chairman of Shuaa Capital and Chairman of GFC.
