Arcapita Bank B.S.C.(c), a leading international investment firm headquartered in Bahrain, announceD that having generated a total demand of more than US$1.3 billion for its five year Syndicated Murabaha Facility, the issue was increased in size from its initial target amount of US$500 million and has closed at US$1.1 billion.
The proceeds of the Facility will be used to re-finance Arcapita’s outstanding US$210 million Multicurrency Sukuk due 2010, as well as for general corporate purposes.
The underwriters for the transaction were Barclays Capital, the investment banking division of Barclays Bank PLC, DBS Bank Ltd, European Islamic Investment Bank Plc, Standard Bank Plc, Standard Chartered Bank and WestLB AG. WestLB acted as the Facility Agent and Dawnay, Day & Co., Limited is the Commodity Supplier.
Abdulaziz Hamad Aljomaih, Vice Chairman of Arcapita, said, “This is another important milestone for Arcapita. The high demand for this Murabaha represented a tremendous opportunity to lock in high quality finance at an attractive cost, and support Arcapita’s growing footprint globally. The financing coincides with the opening of Arcapita’s office in Singapore, a steady increase in average transaction size, and the ongoing extension of its alternative investment products.”
Arcapita seeks alternative investments in the Middle East, the United States, Europe and Asia, and to date, has completed investments with a total transaction value of over US$18.3 billion in its four lines of business: corporate investment, real estate investment, asset-based investment and venture capital.
Commenting on the closure of the Facility, Atif A. Abdulmalik, CEO of Arcapita, said, “Over 80% of the demand for this Murabaha came from outside the Middle East, illustrating the broad acceptance of Islamic instruments within the global capital markets. It allows us to benefit from a deep pool of lower cost capital as we continue to expand our business globally. We are particularly pleased with the quality and diversity of participation in the offer, which represents broad endorsement for Arcapita’s track record and its growing global activities in its main markets.”
The closing of the Murabaha Facility follows a series of recent successful corporate transactions for Arcapita. In December 2006, Arcapita completed its largest transaction to date with the acquisition of Viridian Group plc, the Northern Ireland electricity utility, for US$4.2 billion. In January 2007, Arcapita executed its largest US corporate acquisition with the purchase of FORBA, a leading dental practice management company, for a transaction value of US$460.7 million.
ABN AMRO BANK N.V., The Arab Investment Company S.A.A., Badr Al-Islami, Mashreqbank psc, Bank of America, N.A., Chase Bank N.A., CIMB Bank Berhad, London Branch, Citigroup, Credit Suisse, Deutsche Bank AG, Dresdner Bank AG London Branch, Fortis Bank SA/NV, HSBC Bank plc, ING Wholesale Banking, J.P.Morgan plc, Kuwait Finance House Group, Malayan Banking Berhad, Mizuho Corporate Bank, Morgan Stanley, Natixis, Riyad Bank, The Royal Bank of Scotland plc and SOCIETE GENERALE Corporate & Investment Banking joined at Mandated Lead Arranger level prior to the launch of general syndication.
The Mandated Lead Arrangers were then joined in general syndication by BAWAG P.S.K AG, BBK B.S.C., Boubyan Bank K.S.C. and HSH Nordbank AG Luxembourg Branch as Senior Co-Arrangers. AKA Ausfuhrkredit-Gesellschaft mbH, Frankfurt (Main), Alpha Bank A.E., Bank of Ireland, Dublin, Bank of Taiwan, Singapore Branch, Burgan Bank, Kuwait, Chinatrust Commercial Bank, Offshore Banking, Doha Bank, Hua Nan Commercial Bank, Ltd, London Branch, Islamic Development Bank and Union Tunisienne de Banques joined as Co-Arrangers and Affin Bank Berhad, Bank Muamalat Malaysia Berhad, Bank of Overseas Chinese, Banque du Caire – Abu Dhabi, First Commercial Bank, Singapore Branch, Land Bank of Taiwan, Offshore Banking Branch, The Shanghai Commercial and Savings Bank, Ltd, Offshore Banking Branch, Tunis International Bank and Union de Banques Arabes et Françaises – U.B.A.F. joined as Managers.
