(MEBG) — The Bahrain-based Arab Banking Corp (ABC) has agreed to extend a loans valued at $530 million, for the financing of projects in Oman and Sharjah emirate in the UAE.
ABC’s London office will be responsible for the loan of a gas project in Oman, valued at $410 million.
ABC, together with Japan’s Bank of Tokyo-Mitsubishi, Crédit Lyonnais and Bayerische Landesbank Girozentrale will arrange a second loan for Oman International Bank worth $100 million.
The five-year loan, repayable after three years, will be utilized for general banking purposes. It carries an interest rate of 52.5 basis points above the London Interbank Offered Rate (LIBOR) for the first three years and then 65 basis points over the LIBOR for the remaining two years.
As reported by Middle East Times, the loan agreement is expected to be signed in August.
ABC, operating around the world, is considered among the largest and most profitable banks in the Arab world. It will also be the sole provider of a $20 million four-year loan for the National Bank of Sharjah, due-to-be signed in a matter of weeks, which will carry an annual interest rate of 1 percent above LIBOR.