Arab Banking Corporation (B.S.C.) (“ABC”) is pleased to announce the successful closing of a US$ 750,000,000 Syndicated Term Loan Facility (the “Facility”). The Initial Mandated Lead Arrangers and Bookrunners are HSBC Bank Middle East Limited, National Bank of Abu Dhabi PJSC, Natixis and Sumitomo Mitsui Banking Corporation. National Bank of Abu Dhabi is the Facility Agent and HSBC acted as the Coordinating Bank.
The three year Facility will be used for general corporate funding purposes and carries a margin of 120 basis points over LIBOR.
Syndication was launched in an initial amount of US$500,000,000 and closed significantly oversubscribed, raising in excess of US$800,000,000 from 17 leading international and regional banks. The list of syndicate banks is attached.
Closing was marked by a signing ceremony at the Capital Club, DIFC, Dubai on Thursday August 14, 2014.
The ceremony was attended by ABC’s Executive Vice President and Group Chief Banking Officer, Mr. Ray Ferguson and members of ABC’s executive management team. At the signing ceremony, Mr. Ferguson, commented: ”We are delighted by the success of this syndication and extremely appreciative of the strong demonstration of support for ABC we have received from the 17 leading institutions in the bank market who have joined in this important transaction. The banks here today represent financial institutions from across Europe, North America, Asia and the Middle East.”
On behalf of the Mandated Lead Arrangers Mr. Jonathan Robinson, Regional Head of Global Banking MENA, HSBC commented: “ABC’s first syndication since 2007 has been subscribed by a high quality group of 17, geographically diverse relationship banks. This successful outcome bears testament to the solid institutional stature of ABC.”
Arab Banking Corporation, popularly known as ABC, is an international universal bank headquartered in Manama, Kingdom of Bahrain. Its global network covers 17 countries across the Middle East and North Africa, Europe, the Americas and Asia.
ABC was founded in 1980, is listed on the Bahrain Bourse and its major shareholders are the Central Bank of Libya and Kuwait Investment Authority. ABC has an investment grade rating, with a stable outlook, from both Standard & Poor’s and Fitch.
ABC uses it’s deep local market knowledge and insight of it’s markets to deliver a truly international array of Trade Finance, Treasury, Project Finance, Structured Finance, Syndications, Capital Markets and Islamic Banking services to Corporate and Institutional clients across the world. It is also expanding its retail banking network and is currently serving customers across the MENA region in Jordan, Egypt, Tunisia and Algeria.
ABC has demonstrated strong profitability growth in recent years. In 2013, Total Group Operating Income rose to US$ 857 million (US$ 816 million in 2012) and Net Profit increased to US$ 239 million (US$ 205 million in 2012).
For the first half of 2014, ABC Group recently reported a Net Profit of US$ 137 million, an increase of 22% against the corresponding period in 2013. Total Assets stood at US$ 28.1 billion, Shareholder’s Equity at US$ 3,980 million, with a Group Capital Adequacy ratio of 20.7%.
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