Bank ABC closes $320m syndicated facility for KIB

25/08/2015 08:58 AST

Kuwait International Bank (KIB) has successfully closed a debut syndicated murabaha financing facility.

A statement said Bahrain-based Bank ABC and Bank ABC Islamic acted as the initial mandated lead arrangers and co-ordinating banks for the facility, which was signed yesterday. Initially launched to raise $100 million, strong interest from the market prompted KIB to utilise the significant oversubscription to increase the size to $320m.

The facility carries a tenor of three years and will be used by KIB for general funding purposes.

KIB chairman Shaikh Mohammed Jarrah Al Sabah said the overwhelming participation by regional and international financial institutions in the facility affirmed the bank’s strong position.

“We are happy to acknowledge the confidence placed in our expertise and capacity to tap the capital markets with such deals.

“The resources garnered through the deal are in line with the strategy to diversify funding sources required for pursuing asset growth plans,” he added.

Bank ABC executive vice-president and group chief banking officer Ray Ferguson said it was a landmark transaction for the Bahraini bank which was able to meet the requirements of an important client.

The bank’s head of syndications John McWall said the significant oversubscription, supported by a high quality group of 13 regional and international-based banks, reflected strong relationship support for KIB and confidence in the Kuwait banking market.

Gulf Daily News