Citi drops out of $1.5 billion financing of Americana sale -sources
Citigroup has dropped out of the group of banks providing a $1.5 billion bridge loan to Gulf-based Adeptio for its proposed purchase of a majority stake in Kuwait Food Co (Americana), three sources aware of the matter said on Thursday.
The U.S. bank failed to secure internal approval to participate in the deal, with two of the sources indicating that Americana’s business dealings in Iran had raised compliance concerns and was one of the reasons for the bank’s withdrawal.
It was one of the institutions leading the arrangement of the 18-month financing for Adeptio, a Gulf-based group of investors who include Mohamed Alabbar, chairman of Emaar Properties.
All the sources said that Citi’s withdrawal would not ultimately impact the buyer’s ability to close the financing as other banks would step in to fill the void.
Citi declined to comment. Alabbar could not be reached for comment.