Vakson raises AED185 million syndication loan through National Bank of Fujairah.
Bank of Baroda, State Bank of India, First Gulf Bank and Habib Bank AG Zurich team up with NBF to provide a medium term facility to fund real estate expansion
Jebel Ali Free Zone-based Vakson Group Ltd (VGL) has signed an agreement to raise AED 185 million through a syndicated facility. The loan will be used by an associate company - Vakson Real Estate LLC for financing medium term working capital requirements. National Bank of Fujairah (NBF) was the Initial Mandated Lead Arranger (IMLA) and book runner for the facility.
"We are extremely pleased to have been appointed as the IMLA for this facility and to have successfully closed this syndication with VGL. This closure is clear evidence that NBF has not only the expanding product capabilities, but the flexibility and assurance to meet all aspects of its clients' needs. On behalf of all banks in the syndicate we would like to extend our congratulations to VGL for successfully closing their first syndicated facility and we would like to thank the banks for their support and for demonstrating a high degree of confidence in the management and growth plans of VGL" said PB Das, Head of Corporate and Institutions, NBF.
The syndication led by National Bank of Fujairah had a total of 5 banks participating with Bank of Baroda and State Bank of India joining as Mandated Lead Arrangers, First Gulf Bank as Arrangers and Habib Bank AG Zurich as Co Arrangers. The three-year facility will provide Vakson with
additional working capital to strengthen its enviable market position.
"Corporate finance requirements are now being rolled-out by companies throughout the region and we forecast strong growth in the syndicated loan market. With the continued support of our partner banks, we are also planning to bring additional structures to the market," added Das.
"From the outset we were confident that NBF would have the necessary expertise and experience to deliver this facility to the market. We have a strong working relationship with NBF and one of their overriding strengths is their ability to deliver their promise," said Mohammed Ali Vakil, Chairman of VGL.
Ghulam Abbas Vakil, Managing Director and CEO of VGL said "One of our key objectives is to be a total solution provider for properties and to create value for owners, developers and end users of residential and commercial properties. We are grateful to the support extended by our banking partners in the syndicate to enable us to continue with realizing our objectives".
Established in 1970, Vakson Group is one of the largest full service real estate groups in Dubai. Their diversified property portfolio includes freehold development and marketing, leasing, rentals,
brokerage, property management, advisory services and other related activities and covers a wide spectrum of property ranging from traditional villas and executive penthouses to waterfront family homes and hi tech commercial office space. Vakson Group has real estate interests in many of the iconic projects throughout Dubai, such as Palm Jumeirah, Palm Jebel Ali, Dubai Marina, Jumeirah Lake Towers Jumeirah Village, Dubai Silicon Oasis and Dubai Maritime City.
