UAE's First Gulf Bank inks $900m loan deal

UAE's second largest bank says agreement reached with group of international lenders
UAE's First Gulf Bank inks $900m loan deal
RATINGS DOWNGRADE: Citibank cited First Gulf Banks deteriorating asset quality and exposure to the real-estate sector.(ITP Images)
By Reuters
Tue 13 Nov 2012 05:58 PM

First Gulf Bank, the second-largest lender by market value in the UAE, has signed a three-year $900m loan with a group of international lenders, the bank said in a statement on Tuesday.

The senior unsecured facility, priced at 130 basis points over the London interbank offered rate (Libor), was increased from the original $800m amount because of demand from banks wanting to join the deal, FGB said.

"In our continuous efforts to strengthen the balance sheet and deliver a superior financial performance, FGB aims to utilise the facility to finance the expansion of the existing operations as well as new business opportunities globally," Andre Sayegh, CEO of FGB, said.

Six lenders - Bank of America Merrill Lynch, Bank of China, Samba Financial Group, Union National Bank, Al Khalij Commercial Bank and Arab Bank - joined the eight bookrunners on the deal.

FGB originally mandated Bank of Tokyo-Mitsubishi UFJ, Citi, Commerzbank, Deutsche Bank , HSBC, Mizuho, National Bank of Abu Dhabi and Standard Chartered in September to arrange the loan.

The bank, majority-owned by Abu Dhabi's ruling family, raised $650m from the bond market at the beginning of October.

Last month, FGB reported a 15 percent jump in third-quarter net profit, following on from a 14 percent net profit rise in the three months to June 30.

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