Murabaha agreement worth $130m; Al Tamimi & Co legal counsel
KUWAIT CITY, July 30: Boubyan Bank acted as the lead arranger for a Murabaha agreement worth US $130 Million for Boubyan Petrochemicals Company.
The deal consisted of a US $70 Million Murabaha facility tranche and a KD 16.5 Million Murabaha facility tranche, both having a term of five (5) years.
Other participating local and international banks include; Ahli United Bank, Kuwait International Bank and Bank of London & The Middle East PLC.
Vice-chairman & Managing Director of Boubyan Bank, Mr. Adel Al-Majed, said: "Signing such an agreement under the current circumstances is a testimonial for Kuwaiti banks and their abilities to finance the plans for major companies despite the challenges the banks are encountering all over the world due to the repercussions of the Global Financial Crisis".
He added: "The current conditions necessitate collaboration and alliances among all players to launch more finance products that will contribute to the expansion plans of renowned companies, further providing added value to the Kuwaiti economy, which is being driven by the government's plans to motivate the government cycle in collaboration with various economic sectors."
During the event, the General Manager of Corporate Banking & Treasury Services Group in Boubyan Bank, Moataz El-Rafie, said; "The financing of Boubyan Petrochemicals Company comes at a time in which Boubyan Bank specifically witnesses a set of momentous transformations and developments which started with the NBK acquisition of a significant stake in the Bank's capital in August 2009, subsequently increasing its direction towards the core banking business, including the financing operational companies." He also noted that the Bank spares no effort in supporting and financing operational companies with clear visions and strategies like Boubyan Petrochemicals Company, which is considered one of the leading companies in the petrochemicals industry.
El-Rafie added that there is a growing interest in Islamic financial transactions, including murabaha, which proved its ability in recent years, as an Islamic financial product or service for financing mega projects, as well as supporting operational companies in their expansion efforts.
Al Tamimi & Company along with SNR Denton acted as legal counsel for Boubyan Bank in the transaction. The Al Tamimi team was led by Alex Saleh, Partner and Head of Office for Al Tamimi & Company Kuwait, along with Senior Associates Riza Ismail and Islam Abaza.
© Arab Times 2011
