Bank Muscat successfully closes club loan facility worth $650mn
Bank Muscat on Sunday announced that it has successfully closed a senior unsecured loan facility of US$650mn with a consortium of 20 relationship banks from across the globe.
The transaction, which was originally launched for US$500mn, received commitments of over US$1.2bn, Bank Muscat said in a press statement.
The transaction, it said, received overwhelming support from the international banking community and was supported by 20 lenders from the GCC, Europe, the US, Asia and Africa.
In view of the oversubscription, Bank Muscat decided to scale the facility up to US$650mn. The loan facility was closed at favourable financing terms showing a healthy appetite for the bank’s fundraising activities. The facility, which has a three-year tenor, will be used to refinance the bank’s existing loan as well as project financing and general corporate financing, Bank Muscat statement said.
Sheikh Waleed K al Hashar, chief executive officer of Bank Muscat, said, “The successful closure of this club loan reflects the sultanate’s growth-oriented economic outlook as well as the confidence of international banks in the country and in Bank Muscat’s strong financials. We value the strong support from our international partners resulting in approximately 2.5 times oversubscription, which further compliments our reputation and brand as a leading bank in the Middle East.”
The senior unsecured loan was facilitated through the bank’s Wholesale Banking Group (WBG) whichspecialises in fund raising for the bank as well as other financial institutions across the emerging markets. The WBG team brings a focused approach to fund raising, delivering tailored funding solutions for the benefit of its clients.
The Arab Banking Corporation, Commerzbank, First Abu Dhabi Bank (FAB), Mashreq Bank, Mizuho Bank and Wells Fargo acted as the joint lead coordinators as well as mandated lead arranger and bookrunners. Abu Dhabi Commercial Bank, Citibank, Credit Europe Bank, Emirates NBD, Gulf International Bank, HSBC Middle East, MUFG Bank, National Bank of Bahrain, National Bank of Ras Al Khaimah, Standard Chartered, State Bank of India-WBB Bahrain and Sumitomo Mitsui Banking Corporation were book-runners and mandated lead arrangers. BanqueMisr and Landesbank Baden-Württemberg participated as lead arrangers. FAB is the agent bank for the facility.
Bank Muscat posted a net profit of RO185.55mn for the year 2019 compared to RO179.63mn reported during the same period in 2018, an increase of 3.3 per cent.