Bahrain's Mumtalakat signs $500m loan deal

Sovereign fund confirms five-year facility; says it will be used to refinance existing debt
Bahrain's Mumtalakat signs $500m loan deal
By Andy Sambidge
Tue 06 Jan 2015 03:33 PM

Bahrain's sovereign fund Mumtalakat Holding Co announced on Tuesday the signing of a $500 million credit facility with a total of six banks.

The loan has been structured as a five-year facility and will be used to refinance existing debt.

The participating banks were named as BNP Paribas, Deutsche Bank Luxembourg, Standard Chartered Bank, the Bank of Tokyo-Mitsubishi, Arab Banking Corporation and National Bank of Bahrain.

BNP Paribas also acted as coordinating Bank, documentation and facility agent for the loan.

The state-owned fund was last in the loan market in September 2013, when it completed a $250 million revolving credit facility through five Bahraini and regional banks.

It sold a $600 million, seven-year Islamic bond in November at 205 basis points over midswaps.

One of the smaller sovereign wealth funds in the Gulf region, Mumtalakat had $7.1 billion of assets under management at the end of September. It holds stakes in 40 firms in the kingdom's non-oil sector, including Bahrain Telecommunications Co (Batelco) and Aluminium Bahrain (Alba).

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