Mar 26 2012 |
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Standard Chartered, Noor Islamic ready $175m loan for shipping firm
Monday, Mar 26, 2012
Gulf News
Dubai Standard Chartered Bank and Noor Islamic Bank announced yesterday that they have acted jointly as initial mandate lead arrangers and structuring banks for a five-year $175 million (Dh642.77 million) senior secured club facility for Stanford Marine Group.
The club of banks funding this transaction was Standard Chartered , Noor Islamic Bank , Barwa Bank of Qatar, Mubadala GE Capital and Abu Dhabi Commercial Bank ( ADCB ). Standard Chartered Bank acted as facility agent, investment agent, and hedging bank.
Lenders extend support
“The difficult market conditions that prevailed during the fourth quarter of 2011 imposed critical challenges on the lending market. With most European shipping finance banks retreating on the back of the Eurozone crisis, this led to a tightened dollar liquidity pool and rising dollar cost of funding. Consequently, we had to explore other sources of bank funding, such as the local currency (dirham) and Islamic liquidity,” Knut Mathiassen, regional head of shipping finance, Middle East, Standard Chartered , said.
‘A complex deal’
“This was a complex deal due to the tight timelines and the mortgaged vessels being flagged in different jurisdictions. It is a strong endorsement of our cross-border Sharia-compliant financial expertise and our ability to leverage our footprint and capabilities in the Sharia-compliant finance sector,” Kazim Ali, acting head of corporate banking, Noor Islamic Bank , said.
Staff Report
© Gulf News 2012. All rights reserved.
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