US$1.2 billion Murabaha facility successfully syndicated and oversubscribed

Published December 14th, 2006 - 09:51 GMT

Joint bookrunners ABC Islamic Bank, Arab Bank, Calyon, Gulf International Bank, Kuwait Finance House, and National Bank of Abu Dhabi successfully closed syndication of a US$ 1.2 billion Murabaha Facility for MTC on Wednesday 06 December 2006. A total of 29 financial institutions from the MENA region, Asia and Europe participated in what is one of the largest Islamic financings for 2006. Proceeds of the Facility will be used to refinance the existing US$ 750 million Murabaha Facility for an additional period of 12 Months and for general corporate purposes.
The facility was underwritten and syndicated by Mandated Lead Arrangers ABC Islamic Bank, Arab Bank, Calyon, Gulf International Bank, Kuwait Finance House, and National Bank of Abu Dhabi. Gulf International Bank acted as the Modareb and Investment Agent.
The Murabaha facility was celebrated today with a signing ceremony at the Sheraton Hotel in the Kingdom of Bahrain. Bahrain is a leading Islamic Finance Center and home of MTC Vodafone – Bahrain, the first greenfield license secured by the group and the first nationwide 3G network in the world.
The signing ceremony for the Murabaha facility agreement was attended by the top management of MTC, including its Chairman Mr. Asaad Ahmed Al-Banwan and Managing Director - Deputy Chairman Dr. Saad Hamad Al-Barrak, Members of the Board as well as the senior management of the banks participating in the facility.
After the signing, Mr. Al-Banwan thanked all the banks that participated in the deal for their trust and support, indicating the company’s desire to maintain a prosperous and mutually beneficial relationship with them as MTC continues its strategy of profitable expansion into regional and emerging markets.
MTC, which has been very active in bidding for and acquiring mobile businesses over the past three years, has historically relied on conventional facilities for debt funding requirements. In line with the company’s overall strategy to diversify sources of funding, MTC decided to tap the Islamic market for the second time through this one-year Islamic Murabaha Facility.

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