MANAMA: Kuwait International Bank K.S.C. has successfully closed a debut syndicated Murabaha financing facility. The facility was signed on Monday wherein Bahrain-based Bank ABC and Bank ABC Islamic acted as the initial mandated lead arrangers and coordinating banks for the facility.
The facility carries a tenor of three years and will be used by KIB for general funding purposes. The Facility was initially launched for US$100 million, and following strong interest from the market KIB decided to utilise the significant oversubscription to increase the Facility size to US$320 million.
“The overwhelming participation by the regional and international financial institutions in the syndicated facility affirms the strong position of Kuwait International Bank. This not only confirms the trust and reputation of KIB in the international financial arena backed by the resilient and robust economy of Kuwait, but also the increasing global acceptance of Sharia compliant products and structures. We are happy to acknowledge the confidence placed in our expertise and capacity to tap the capital markets with such deals. 2015 will be a milestone year for KIB. The resources garnered through the deal are in line with the bank’s strategy to diversify its additional funding sources required for pursuing the asset growth plans,” said Sheikh Mohammed Jarrah Al-Sabah, Chairman of KIB.
“The tremendous success of this syndication, particularly given the challenging global financial environment, is a definite endorsement of KIB’s track record, financial position and growth prospects. We thank all the banks who participated in the deal for their trust and support and hope to continue the mutually profitable and beneficial relationship with them.”
“We are delighted that Kuwait International Bank appointed Bank ABC to be the sole Initial Mandated Lead Arranger and Coordinator for its debut syndication. It is a landmark transaction where we have been able to demonstrate our commitment and meet the requirements of one of our important clients,” said, Ray Ferguson, Executive Vice President and Group Chief Banking Officer.
Banco ABC Brasil a subsidiary of Bank ABC (incorporated as Arab Banking Corporation B.S.C.), strongly focuses on providing loans and structured products to midsized and large companies. Its strategy is based on growing the profitability per client in the corporate segment through increasing cross-selling of products as well as growing the number of clients in the midsized business segment.