13 December 2015
Dubai - UAE: Leading financial institution, Mashreqbank psc (Mashreq) has announced the successful signing of USD 100 million syndicated medium term loan (Facility) for financing general corporate requirements of SK Engineering & Construction Co. Ltd (SK E&C) by a consortium including Mashreq, Al Ahli Bank of Kuwait K.S.C.P. (ABK), and Commercial Bank of Kuwait K.P.S.C. (CBK). Mashreq acted as the exclusive arranger and book runner for this transaction, while ABK and CBK acted as joint lead arrangers.
SK E&C, established in 1977 in the Republic of Korea, is a leading global player in the engineering, procurement, construction, operation and maintenance services industry, with an established track record of executing oil & gas and infrastructure projects in the Middle East such as the Ruwais Refinery Expansion Project in U.A.E., Bab Gas Compression Project in U.A.E., and Doha Metro's Red Line North Underground Project in Qatar. SK E&C is part of the SK Group, which is the 3rd largest conglomerate in the Republic of Korea. SK Group is ranked 57th amongst the top 500 global companies.
This Facility is part of the company's plan to proactively tap liquidity in the GCC financial markets given their upcoming financing requirements in relation to their Middle East projects. SK E&C has previously availed project-specific, contracting facilities from regional banks. This landmark Facility therefore represents an important advancement in the Company's relationship with the regional banks through availing loans for general corporate purposes.
John Iossifidis, Head of Corporate & Investment Banking Group, Mashreq commented, "As one of UAE's leading financial institutions, we have always nurtured our ambitions keeping in mind the nation's, in fact the region's, development vision. Mashreq considers SK E&C, a leading global player in the contracting world, to be an important client. Over last 7 years, we have actively supported SK E&C on 12 key infrastructure and Oil & Gas projects in the region, including the likes of Ruwais Refinery Expansion Project, Bab Gas Compression Project, and Doha Metro's Red Line North Underground Project.
We are proud to support SK E&C as the sole book runner for their syndicated loan facility in the region, which will provide them the necessary cushion in relation to their upcoming financing requirements in the region by diversifying their regional banking relationships. This transaction re-iterates Mashreq's continued commitment to support its clients and the regional economy, which has helped cement Mashreq's position as a leading bank in contracting finance in the region."
Mr Ho Eun Hong, Vice President, SK E&C has said, "SK E&C has executed various mega-size projects in the Middle East, focusing on oil & gas and infrastructure. Mashreq has always cooperated with SK E&C in a very dedicated and passionate manner by supporting our operations in working capital and contract finance. We have built great trust between us through our past experiences where we worked together and that helped lead this agreement to a great success.
This transaction is a great accomplishment driven by Mashreq's enthusiastic support and timely execution, as well as SK E&C's strong presence and the banking relations in the Middle East with ABK and CBK. Both ABK and CBK have offered us reliable financial services including support for the Kuwait Oil Company's and Kuwait National Petroleum Company's projects. We are very confident that this deal will work as a milestone in strengthening our relationships with Mashreq, ABK and CBK and look forward to our future cooperation in various financing fields."
Mashreq is the oldest bank in the U.A.E. with an extensive branch network across the Emirates. Mashreq is also present in Qatar, Bahrain, Kuwait and Egypt and has 26 overseas offices in 12 countries spread across Europe, USA, Asia and Africa, thereby providing a comprehensive range of international financial services. Established in 1967, Mashreq has established itself as a market leader by delivering award-winning customer experiences and innovative thinking across its financial products and services. Mashreq's various banking divisions cater to unique specialisms and expertise and include: Corporate Banking, Retail Banking, International Banking, and Innovative Treasury Services. The bank also provides Sharia'h compliant financial banking solutions. As a leading financial institution, Mashreq is committed to supporting every community it serves. In the U.A.E., the bank pays particular attention to recruiting, training, and developing U.A.E. National employees. Mashreq is the only financial institution in the U.A.E. to have been awarded the CSR Label by Dubai Chamber for five years in a row. Mashreq is the recipient of prestigious industry honors, including the "Best Regional Debt Bank in the Middle East 2015", "Best Investment Bank in the U.A.E. 2015" awards by the New York based Global Finance, "Best Regional Investment Bank in the Middle East" and "Best Loan House in the UAE" as part of the Middle East Banking Awards 2014 held by the EMEA Finance.
For more information, please contact
Huda Ismail Nssrin Khalil
Public Relations, Mashreq Public Relations, Mashreq
Tel: 04 -6083629 Tel: 04 - 6083836
Email: HudaI@mashreq.com Email: NssrinK@mashreq.com
ABK was established in 1967 with its Head Quarters located in Kuwait City and has a current capital of USD 568 million. ABK is one of the leading banks in corporate and retail banking. ABK delivers world-class banking services to satisfy its customers in Kuwait and in the Gulf region through its wide local network of branches in addition to two branches in Dubai and Abu-Dhabi in the UAE. The recently acquired Piraeus Bank of Egypt will add another 39 branches to the ABK network to reach 72 branches in total. The Bank's record is reflected in its strong credit ratings, being listed by Moody's as A2 and by Fitch A+. ABK's efforts and performance have been recognized throughout the year with prestigious awards including: 'Best Retail Bank by Banker ME', the 'Most Improved Retail Bank in the Middle East by The Asian Banker', ABK plays an active community role by supporting cultural, social, educational, and sporting activities. The bank also provides financial support to the social care homes for children with special needs. The Bank will continue to move forward in the same direction and build on its successful strategy of 'Simpler Banking', while keeping its customers' best interests at the center of its operations.
Commercial Bank of Kuwait KPSC operates as a full service commercial bank and is the second oldest bank in Kuwait. The Bank was incorporated on 19 June 1960 and is listed on Kuwait Stock Exchange since 29 September 1984. It has full-fledged branch network that provides customers with state-of-the-art banking services at fingertip. The Bank has been accorded a strong long term credit rating of A3 by Moody's and A+ by Fitch. It has a balance sheet of USD 13.2 billion and total equity base of USD 1.8 billion as at 30 September 2015 to support its business activities. From retail banking to mega project finance, the Bank has developed a strong and growing corporate and retail banking franchise that provides innovative and customized financial solutions to its customer base. The International Banking & Syndication Division of the Bank provides cross border international banking services and syndicated financing facilities to both local and foreign customers through correspondent banking relationships with banks and financial institutions located in the local, regional and international markets.
In the recent years, the Bank played an active role - and will continue - to support the Kuwait Development Projects through its onshore/offshore participation in and onshore origination of syndicated/bilateral facilities and project financing - both on the funded and unfunded facilities. Some of the major projects financed by the Bank under the Kuwait Development Plan include Clean Fuel Projects, Doha Link Project, Fifth Gas Train Project, Kuwait University, Al Jahra Hospital, Aden Hospital and New Refinery Project.
About SK E&C
SK Group comprises 82 affiliate companies operating in 3 major business segments: energy & chemicals, telecommunications, and trading & services. According to Fortune Global 500, SK Group is among the three largest conglomerates in Korea, and it is ranked 57th among the top 500 global companies in 2015 with a combined revenue of 157.5 billion US dollars. SK E&C was established in 1977 and has since executed various large-scale overseas projects in oil and gas and infrastructure including but not limited to the Ruwais Refinery Expansion Project in U.A.E., BAB Gas Compression Project in U.A.E., Yanbu Export Refinery Project in Saudi Arabia, Wasit Gas Plant Project in Saudi Arabia, Jizan Refinery & Thermal Project in Saudi Arabia, and Doha Metro Red Line Project in progress in Qatar.
SK E&C has established a strong trust and reputation in the global market across all major business units: oil, gas & petrochemical, power plants, u-business, infra business, and housing & architecture. SK E&C has sustained a stable growth, recording revenue of 8.5 billion dollars in 2014. SK E&C has established a powerful network of 16 marketing branches and 16 local subsidiaries and global engineering centers worldwide.
© Press Release 2015