Ahli United Bank arranges US$ 200 Million term loan facility for Al-Fardan Properties in Qatar

Press release

Published November 24th, 2011 - 05:48 GMT

Ahli United Bank

Alfardan Properties Co SOC (Borrower) one of the regional luxury goods and services provider and Ahli United Bank (AUB), one of the regional leading banking groups in its role as Mandated Lead Arranger, are pleased to announce that they have managed successful financial closure of a US$ 200 Million 6 years Term Loan Facility (the Facility). Signed in Doha, Qatar, the Facility will be used to refinance existing loans and to finance working capital and other capital projects of the Borrower in Qatar.

In spite of the oversubscription by 50%, the Facility was capped at US$ 200 Million attracting a diverse regional banking group of 6 banks from Bahrain, UAE and Qatar.

The Banks joining the Facility are Ahli United Bank B.S.C. (Mandated Lead Arranger), The Commercial Bank of Qatar Q.S.C. (Facility Agent), Ahli Bank Q.S.C. (Security Agent & Account Bank ), Gulf International Bank B.S.C., National Bank of Abu Dhabi PJSC and BBK B.S.C.

At the signing ceremony, Mr. Omar Hussain Alfardan, President of Alfardan Properties Co. S.O.C., thanked the Mandated Lead Arranger and Lending Banks for their support and commitment to Alfardan Properties Co. S.O.C. and added that the attractive terms of this agreement are testimony to the solid stature Alfardan Group and its subsidiaries enjoy in the financial markets.

Alfardan Properties Co. S.O.C. was established in 1992 to develop luxury residential real estate portfolio of assets. Alfardan Properties Co. S.O.C. owns and manages various real estate properties in Qatar, including Alfardan Gardens, Alfardan Towers as well as Kempinski Serviced Apartments.

On behalf of the Mandated Lead Arranger and Lenders, Mr. Bassel Gamal, Senior Deputy Group Chief Executive Officer - Banking Group of AUB congratulated the Borrower for the successful conclusion of this Facility, which will help its financing needs and towards achieving its ambitious growth plans. He said that this Facility is proof of the confidence in the capability of AUB to lead, arrange and finance large ticket transactions and reflects the commitment of AUB Group to serving and contributing to the development of the communities and countries in which it operates.

On behalf of the Facility Agent, Commercial Bank Group Chief Executive Officer Andrew Stevens thanked the Borrower for providing them an opportunity as the Facility Agent and attributed the success of the transaction to the distinctive brand image of Alfardan Group and professionalism of its team.

Background Information

Ahli United Bank

Ahli United Bank BSC (AUB) is a full fledged commercial and investment banking group providing wealth management, retail, corporate, treasury, offshore and private banking services.

The Group's businesses consist of the operations in Bahrain, a wholly owned subsidiary in the UK and associates in Kuwait, Qatar, Oman, Egypt and Iraq. In Kuwait, AUB has an effective holding of 75% in the Bank of Kuwait and The Middle East while in Qatar, AUB has a 40% stake in Ahli Bank QSC. In Oman, AUB has a 35% stake in Ahli Bank SAOG while in Iraq AUB has a 49% stake in the Commercial Bank of Iraq. In Egypt, AUB, its associate banks and other Gulf financial institutions together hold an 89.3% stake in Ahli United Bank SAE. Apart from these banks, AUB has a nominal stake of 75% in KMEFIC, a brokerage, asset management and corporate finance company based in Kuwait with operations around the Arabian Gulf.

Overall, the AUB Group, through its subsidiaries and associates, operates through a network of 93 branch offices and employs over 3,000 people.

AUB’s stated mission is to create an unrivalled ability to meet customer needs, provide fulfillment and development for staff and to deliver outstanding shareholder value. AUB’s strategy is to expand through both organic growth and acquisition in order to act as a ‘multifaceted financial bridge’ between the international financial markets and its Gulf clients. It has sought to establish an operating presence in each of the Pan-GCC countries with a targeted 10% - 20% market share. To this end, AUB continues to develop and invest to increase its ability to acquire new businesses and rapidly integrate them with the bank’s systems. This development has helped accelerate progress in the delivery of financial services and penetration into targeted geographical markets.