Bukhatir Investments Limited has signed a US$215 million Syndicated Loan Facility recently, including a US$ 165 million Term loan facility and a US$50 million Commodity Murabaha. This included an over-subscription of US$ 15 million.
WestLB AG, London Branch acted as sole underwriter, book runner and initial mandated lead arranger on the debt financing. HSBC Bank Middle East, Bank of Sharjah and First Gulf Bank PJSC joined as a Mandated Lead Arrangers in the general syndication of the conventional facilities along with Landesbank Baden-Württemberg as Lead Arranger and The Arab Investment Company S.A.A. Wholesale Bank, Bank of Taiwan, BANQUE BIA, British Arab Commercial Bank, Chinatrust Commercial Bank Co., Ltd, First Commercial Bank Ltd., Land Bank of Taiwan, Offshore Banking Branch, The International Commercial Bank, Maybank, Mega International Commercial Bank Co. Ltd., Hua Nan Commercial Bank LTD., as Managers. The Commodity Murabaha was supported by European Arab Bank plc, Kuwait Finance House (Malaysia) Bhd and Dubai Bank PJSC. Alpen Capital acted as Advisers to the Syndication.
The facility includes a amortising term loan facility with a maturity of 5 years and a margin of 110bps over LIBOR for the first three years stepping up to 125bps in year 4 and 5. In addition, there is a 3 year revolving facility and a commodity Murahaba facility with a margin of 105 bps over LIBOR.
Established in 1974, Bukhatir Group is one of the largest and most diversified business houses in the UAE with interests in construction, manufacturing, real estate, information technology, trading, sports oriented townships, television, retail and education. Dubai Sports City is an iconic project of the Group and similar sports cities are being set up in Tunisia, Pakistan and Morocco, with India, Sri Lanka and South Africa being the next destinations. The geographical reach of the Bukhatir Group ranges from the GCC to North America and Africa, as well as to South Asia.
Mr. A. R. Bukhatir, Chairman of the Group said: "We are delighted to have such extensive support for the Syndication facility, which underscores the market's confidence in the ongoing expansion and investment plans of the Bukhatir Group".
Dr. Bhaskar Banerjee, Executive Director of the Group pointed out that the over-subscription at competitive interest rates was quite an achievement at the time of a global financial crunch. In addition, the participation of a large number of international banks and the continuing support of UAE banks were particularly gratifying, he said.
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© Press Release 2008
