General syndication was launched on 13th June 2007.
ADIB, CALYON and Fortis are the bookrunners. CALYON will also act as Wakil in connection with the Facility and ADIB as Shari’a Advisor. Proceeds of the Facility will be used to finance the Purchaser’s Islamic trade finance ctivities.
The structure of the transaction has been approved by Abu Dhabi Islamic Bank’s Shari’a & Fatwa Supervisory Board represented by its Executive Committee.
The following banks joined the IMLAs as Mandated Lead Arrangers, ahead of general syndication: Natixis, Bayerische Hypo-und-Vereinsbank AG and Doha Bank.
Other details of the Facility include maturity of 3 years; profit margin of 6 month LIBOR + 0.95%; tickets for Mandated Lead Arranger – US$20 million; Arranger – US$10 million; and Senior Lead Manager – US$5 million.
Awal Bank (“The Purchaser”) was incorporated in the Kingdom of Bahrain on 11 August 2004 under license from the Central Bank of Bahrain.
The principal activities include a full range of wholesale banking services including commercial lending, corporate and trade finance, Islamic product offering, investment banking, acceptance of deposits and treasury activities. Since its establishment, the Purchaser has become one of the largest Bahrain-based banks in terms of net worth. As at 31 December 2006, shareholders’ equity amounted to US$ 1,195 million and total assets were US$ 4,367 million. The share capital was subsequently increased to US$ 1,000 million, with shareholders’ equity now standing at US$ 1,445 million.
Awal Bank is a strategic element of the Saad Group of Companies which was formed in the early 1980s by its Chairman, Mr. Maan A. Al-Sanea. The Saad Group of Companies was recently confirmed as the 7th largest diversified group in the Kingdom of Saudi Arabia and the 23rd largest in the Gulf region.
Saad Investments Company Limited, as one of the main shareholders of Awal Bank (48%), is rated with BBB+ from Standard & Poor’s, Baa1 from Moody’s and A- from Capital Intelligence, while all three agencies gave stable outlook.
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