arab bank plc
USD 500,000,000 Syndicated Term Loan Facility
Credit Agricole CIB (CALYON), HSBC Middle East Limited and J.P. Morgan plc (together “the underwriting Mandated Lead Arrangers) are pleased to announce the successful signing of the US$ 500 Million debut Term Loan Facility (the “Facility”) for Arab Bank plc.
The underwriting Mandated Lead Arrangers fully underwrote the Facility and launched it to the market on 6th June. It enjoyed strong support from senior banks, with ABN Amro Bank, Arab National Bank, Bank of Tokyo Mitsubishi, Credit Suisse, Gulf International Bank, Mashreqbank, National Bank of Abu Dhabi, National Commercial Bank, RZB, Societe Generale, Sumitumo Mitsui Banking Corporation and Wachovia Bank, joining the facility as Mandated Lead Arrangers.
The Facility has also been well received by the broader market, with total commitments reaching US$713 Million from 29 banks. Following this successful oversubscription, Arab Bank plc has elected not to increase the facility, maintaining the originally targeted level of US$ 500 Million.
The Facility is for general corporate purposes, has a five-year bullet maturity and pays a margin of 25bps over LIBOR. The approach to the syndicated loan market is in line with Arab Bank's strategy of diversifying funding sources and the efficient management of its assets and liabilities.
Arab Bank Chairman/CEO Abdel Hamid Shoman said the wide international participation in covering the facility is a measure of the increasing regional and international confidence in the Arab Bank.
Arab Bank, he added, will continue its expansion strategy, enhance its regional and international presence and ensure that its investments are distributed at both the geographical and sectoral levels in a way that ensures the strongest revenues, while at the same time managing credit and investment risks.
Shoman explained that the bank’s senior management decided to seize the opportunity of syndicating the loan facility at the international level, which enjoys a competitive and preferential loan rate and highlights the financial strength and the trust the Arab Bank enjoys.
Arab Bank was established in 1930 as the first private sector financial institution in the Arab World. Based in Amman, Jordan, Arab Bank enjoys an unmatched Middle Eastern branch network and a global footprint spanning 29 countries across 5 continents. Arab Bank ranks among the leading international banks in terms of equity, earnings and assets. It maintains a strong presence in key markets and financial centers such as London, Singapore, Zurich, Paris, Frankfurt, Sydney, New York, Dubai and Bahrain. Arab Bank provides a wide variety of financial services to individuals, corporations, government agencies and other international financial institutions.
Arab Bank Group is comprised of Arab Bank plc (along with its subsidiaries and affiliates) and its sister institution Arab Bank (Switzerland).
During 2006, Arab Bank recorded a historic outstanding performance with the Group’s pretax profits reaching USD 790 million and net income after tax of USD 625 million. With the injection of JOD 1.08 billion (USD 1.52 billion) of new share capital in Arab Bank plc via a rights issue in early 2006, Arab Bank Group’s total shareholders' equity reached USD 5.9 billion in Dec 2006, placing the Bank at the forefront of banks in the region. Total assets amounted to USD 32.4 billion with total balance sheet at USD 46.6 billion.
Arab Bank enjoys investment grade ratings from all three major rating agencies: Fitch, Moody’s and Standard & Poor’s. In recognition of the bank’s leading position in the Middle East, its extensive global presence, a history of consistent profitability, its diversification of both risk and revenues, and its prudent balance sheet management, Arab Bank was able to achieve the following long-term foreign currency ratings: 'A-' by Standard & Poor's, 'A3' by Moody’s and 'A-' by Fitch. Citing the very strong liquidity which the Bank continues to hold on its balance sheet, Fitch upgraded Arab Bank plc's short-term rating to 'F1' from 'F2' during May 2007.
As for the financial results of the first quarter of this year, Arab Bank Group achieved a pre-tax profit of US$ 230 Million while after tax income grew by 25% on year to year basis to US$ 181 Million. Total assets stood at US$ 33.3 Billion, and shareholders’ equity reached US$ 6.2 Billion.
