SHARJAH: United Arab Bank (UAB) announced the successful conclusion of its AED 735 million, 2-year Dual Tranche Club Term Loan facility.
The new facility further strengthens UAB’s balance sheet by enhancing its ability to support its clients as well as its own strategic growth goals. The successful closing also reflects the market confidence in UAB’s growth strategy and financial strength.
The dual tranche borrowing comprises a Conventional tranche and a Commodity Murabaha financing facility has been concluded at competitive pricing. The facility also includes a green-shoe option to increase the size up to AED 1.3 billion. Proceeds of the facility will be used for general corporate purposes.
The transaction was arranged by Abu Dhabi Commercial Bank PJSC, Emirates NBD, Emirates Islamic Bank, and First Abu Dhabi Bank as Initial Mandated Lead Arrangers and Bookrunners (IMLABs). Emirates NBD acted as the global Facility Agent.
Commenting on the transaction, Shirish Bhide, Chief Executive Officer at UAB, said,
‘We are delighted to announce this transaction that was done with support from leading financial institutions in the UAE. The transaction is testimony to the market confidence in the bank’s strong fundamentals, management strength and growth prospects. This facility helps UAB in diversifying its funding profile, as it executes a well thought through and sustainable business growth strategy. We thank all the participating Banks for their trust in us.’
Source: Emirates News Agency