Arcapita BankArcapita Bank

The proceeds of the Facility will be used to re-finance ArcapitaArcapita's outstanding US$210 million Multicurrency Sukuk due 2010, as well as for general corporate purposes.

The underwriters for the transaction were Barclays CapitalBarclays Capital, the investment banking division of Barclays Bank PLC, DBS Bank Ltd, European Islamic Investment Bank Plc, Standard Bank Plc, Standard Chartered BankStandard Chartered Bank and WestLB AG. WestLB acted as the Facility Agent and Dawnay, Day & Co., Limited is the Commodity Supplier.

Abdulaziz Hamad Aljomaih, Vice Chairman of ArcapitaArcapita, said, "This is another important milestone for ArcapitaArcapita. The high demand for this Murabaha represented a tremendous opportunity to lock in high quality finance at an attractive cost, and support ArcapitaArcapita's growing footprint globally. The financing coincides with the opening of ArcapitaArcapita's office in Singapore, a steady increase in average transaction size, and the ongoing extension of its alternative investment products."

ArcapitaArcapita seeks alternative investments in the Middle East, the United States, Europe and Asia, and to date, has completed investments with a total transaction value of over US$18.3 billion in its four lines of business: corporate investment, real estate investment, asset-based investment and venture capital.

Commenting on the closure of the Facility, Atif A. Abdulmalik, CEO of ArcapitaArcapita, said, "Over 80% of the demand for this Murabaha came from outside the Middle East, illustrating the broad acceptance of Islamic instruments within the global capital markets. It allows us to benefit from a deep pool of lower cost capital as we continue to expand our business globally. We are particularly pleased with the quality and diversity of participation in the offer, which represents broad endorsement for ArcapitaArcapita's track record and its growing global activities in its main markets."

The closing of the Murabaha Facility follows a series of recent successful corporate transactions for ArcapitaArcapita. In December 2006, ArcapitaArcapita completed its largest transaction to date with the acquisition of Viridian Group plc, the Northern Ireland electricity utility, for US$4.2 billion. In January 2007, ArcapitaArcapita executed its largest US corporate acquisition with the purchase of FORBA, a leading dental practice management company, for a transaction value of US$460.7 million.

ABN AMRO BANKABN AMRO BANK N.V., The Arab Investment Company S.A.A., Badr Al-Islami, MashreqbankMashreqbank psc, Bank of America, N.A., Chase Bank N.A., CIMB Bank Berhad, London Branch, CitigroupCitigroup, Credit SuisseCredit Suisse, Deutsche BankDeutsche Bank AG, Dresdner Bank AG London Branch, Fortis Bank SA/NV, HSBC BankHSBC Bank plc, ING Wholesale Banking, J.P.MorganJ.P.Morgan plc, Kuwait Finance House GroupKuwait Finance House Group, Malayan Banking Berhad, Mizuho Corporate Bank, Morgan StanleyMorgan Stanley, Natixis, Riyad BankRiyad Bank, The Royal Bank of Scotland plc and SOCIETE GENERALE Corporate & Investment Banking joined at Mandated Lead Arranger level prior to the launch of general syndication.

The Mandated Lead Arrangers were then joined in general syndication by BAWAG P.S.K AG, BBKBBK B.S.C., Boubyan BankBoubyan Bank K.S.C. and HSH Nordbank AG Luxembourg Branch as Senior Co-Arrangers. AKA Ausfuhrkredit-Gesellschaft mbH, Frankfurt (Main), Alpha Bank A.E., Bank of Ireland, Dublin, Bank of Taiwan, Singapore Branch, Burgan BankBurgan Bank, Kuwait, Chinatrust Commercial Bank, Offshore Banking, Doha BankDoha Bank, Hua Nan Commercial Bank, Ltd, London Branch, Islamic Development BankIslamic Development Bank and Union Tunisienne de BanquesUnion Tunisienne de Banques joined as Co-Arrangers and Affin Bank Berhad, Bank Muamalat Malaysia Berhad, Bank of Overseas Chinese, Banque du CaireBanque du Caire - Abu Dhabi, First Commercial Bank, Singapore Branch, Land Bank of Taiwan, Offshore Banking Branch, The Shanghai Commercial and Savings Bank, Ltd, Offshore Banking Branch, Tunis International BankTunis International Bank and Union de Banques Arabes et Françaises - U.B.A.F. joined as Managers.

The Facility

About ArcapitaArcapita

ArcapitaArcapita is headquartered in Bahrain and also has offices in Atlanta, London and Singapore. ArcapitaArcapita sources high quality alternative investments from around the world, which it places with its network of institutional investors and high net worth investors around the Arabian Gulf. The Bank has an equity base in excess of US$900 million and operates under an investment banking licence granted by the Central Bank of Bahrain.

ArcapitaArcapita has completed investments with a total transaction value of over US$18.3 billion in its four lines of business: corporate investment, real estate investment, asset-based investment and venture capital. The Bank employs 234 people across its four offices.

In November 2006, Standard & Poor's awarded ArcapitaArcapita with an investment grade credit rating of BBB/A-2/Stable. This rating is a reflection of the measured growth of the firm over the last nine years, and its commitment to conservative balance sheet management.

Full details of ArcapitaArcapita can be found at www.arcapita.com

For further information, please contact:
Jon Earl, FD
Tel: +973 17 537 072
Mob: +973 39 300851
Tim Doyne, Arcapita
Tel: +973 17 218333
Mob: +973 39 929009

© Press Release 2007

 

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