First UAE bank to arrange a syndicated loan facility for a Sri Lankan bank

Dubai, United Arab Emirates, 13th April 2011:  Mashreq, one of the UAE's leading financial institutions, along with partner banks Doha Bank, Habib Bank Limited and United Bank Limited anchored and successfully closed a syndicated term loan for Sri Lanka's largest bank, Bank of Ceylon (BOC). The USD 175 Million facility has a tenor of one year.

The initial facility that was sized at USD 100 million received significant over-subscription and was upsized to USD 175 million. The deal witnessed participation from 15 financial institutions from around the region, both Gulf and Asian banks to this successful transaction.

Mashreq is the first UAE financial institution to arrange a syndicated loan facility for a Sri Lankan bank. The signing ceremony took place at Bank of Ceylon head office with the participation of senior representatives of Mashreq and those from other partner banks along with Chairman, General Manager and the senior management of the Bank of Ceylon (BOC).

John Iossifidis, Head of International Banking Group, Mashreq commented, "The success of this deal is a testimonial to the sound infrastructure of the financial sector in the UAE and in Mashreq's capabilities to originate and distribute syndicated loan transactions. Further we immensely value the relationship that we have built over several years with banks in the region and thank our partners for their support on this transaction. . In addition, Bank of Ceylon is a successful financial institution with a strong history and this compliments our strategy to strengthen our portfolio."

Iossifidis added, "Mashreq has an extensive knowledge of the market coupled with strong relationship to expand to emerging market countries. This syndication will further strengthen the already strong strategic relationship between the two institutions."

Dr. Gamini Wickramasinghe, Chairman of Bank of Ceylon said, "We are pleased to partner with an established and a market leader such as Mashreq and stress on the importance of this facility as it gathers some of the well-known banks in the region. This deal demonstrates the confidence of international financial sector towards BOC's history of over seven decades.

BOC was able to tap a whole set of new investors through this syndication. BOC's acceptance among a wider network of International investors is a testament towards prosperous future dealings. BOC intends to use the proceeds to fulfill its short-term funding requirements and trade finance related needs. Both banks look forward to further expand bilateral economic and trade relationships with the signing of this facility.

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About Mashreq:
Mashreq is one of the UAE's leading financial institutions. Founded in 1967 as Bank of Oman, the bank has played a pioneering role in the industry, particularly in retail banking. Among its many firsts, it was the first to launch such products as travelers' cheques, credit cards and ATMs.

Mashreq has received numerous international awards such as the Best Bank in the UAE in 2008 from Euro money and various awards particularly for quality management. It's most recent acknowledgement was Best Consumer Internet Bank in Qatar 2009 & 2010, Best Consumer Internet Bank regionally by Global Finance Awards 2009 and Best Emerging Market Banks Middle East  by Global Finance Awards 2010.

As a leading financial Institution in the UAE Mashreq aims to be world class in every facet of its business, including its social responsibility to the community it serves. Towards this goal the bank pays particular attention to recruiting, training, developing and retaining UAE National employees.

© Press Release 2011