Tuesday, Nov 13, 2012
Abu Dhabi: First Gulf Bank (FGB), a major leading financial institution headquartered in Abu Dhabi, UAE, signed on Tuesday a new three-year $900 million senior unsecured Term Loan Facility with a group of international banks. The deal size, initially announced on September 13, 2012 at $800 million, has been upgraded on the back of high demand from lenders.
The facility will be used for general financing purposes with a bullet repayment at the end of the three-year period, and carries a 130bps margin above the USD benchmark rate. FGB will receive the proceeds from this transaction in December 2012.
The deal lenders include The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citibank, N.A., London Branch, Commerzbank Aktiengesellschaft, Deutsche Bank AG, London Branch, HSBC, Mizuho Corporate Bank, Ltd., National Bank of Abu Dhabi PJSC and Standard Chartered Bank as Initial Mandated Lead Arrangers and Bookrunners, Bank of America Merrill Lynch, Bank of China, London Branch, Samba Financial Group, Union National Bank PJSC, as Mandated Lead Arrangers, and Al Khalij Commercial Bank QSC and Arab Bank PLC as Arrangers.
The facility was oversubscribed during the syndication process. Furthermore, it marks the largest loan market transaction undertaken by a financial institution in the UAE this year, its size and pricing setting a new benchmark in the current market.
“In our continuous efforts to strengthen the balance sheet and deliver a superior financial performance, First Gulf Bank aims to utilize the facility to finance the expansion of the existing operations as well as new business opportunities globally,” said Andre Sayegh, CEO of FGB.
Staff Report
Gulf News 2012. All rights reserved.
