Arab Bank plc US$ 500,000,000 syndicated term loan facility
Arab Bank plc has mandated CALYON Crédit Agricole CIB (“CALYON”), HSBC Bank Middle East Limited and J.P. Morgan plc (“JPMorgan”) (together the “Underwriting Mandated Lead Arrangers”) to arrange a fully underwritten USD 500 million five year Term Loan. The facility represents the first syndicated debt market financing ever undertaken by Arab Bank in its 77 year history. The move comes in line with the Bank's strategy aiming at diversifying funding resources and the efficient management of its assets and liabilities. CALYON, HSBC Bank plc and JPMorgan will also act as Bookrunners for this debut transaction.
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.
The principal terms and conditions of the transaction are as follows:
Borrower : Arab Bank plc
Amount : USD 500 Million
Tenor : Five years
Margin : 25bps p.a.
Ticket Sizes : Mandated Lead Arranger USD 35 Million
Lead Arranger USD 25 Million
Arranger USD 10 Million
© 2007 Al Bawaba (www.albawaba.com)