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United Arab Bank secures $185m funding

Both facilities have a 1-year extension option at the end of the two-year term

Gulf News

Dubai: United Arab Bank (UAB) has concluded syndicated term financing facilities that add up to $185-million (Dh679.5 million).

The two-year bullet term financing facilities comprise a conventional facility and a commodity murabaha financing facility, each carrying a margin of 1.5 per cent per annum over Libor (London interbank offered rate). Both facilities have a 1-year extension option at the end of year 2 at the discretion of each lender.

Proceeds of the facilities will be used for general corporate purposes and the refinancing of an existing syndicated facility. The facilities were initially launched at $150 million and, due to an oversubscription, closed at $185 million.

The transaction was arranged by Bank ABC, Commerzbank Aktiengesellschaft, Filiale Luxemburg (‘Commerzbank’) and Emirates NBD Capital Limited as mandated lead arrangers and bookrunners. Further, Emirates NBD Capital Limited acted as coordinating bank and documentation agent and Emirates NBD Bank PJSC as the global facility agent.

The bank recently successfully concluded a rights issue of Dh688 million resulting in a capital adequacy ratio of 15.5 per cent.

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