Bank of Sharjah obtains $200m loan

Bank of Sharjah (BoS) has signed a $200 million (Dh734 million) club term loan facility with a group of local and international mandated lead arrangers.

The banks include National Bank of Abu Dhabi (also acted as facility agent and coordinator), Commercial Bank of Dubai, Commerzbank Aktiengesellschaft, First Gulf Bank and Wells Fargo Bank.

The two-year facility will be used by the bank for its general corporate purposes, specifically for USD denominated transactions.

The facility carries a margin of 1.25 per cent per annum, with a reduction of 25 basis points compared to the pricing applied to the term loan signed in June 2011 by the bank and fully repaid in August 2013.

The bank maintains an investment grade rating of BBB+ from Fitch. Total assets at the end of 2012 amounted to $6.2 billion and the capital adequacy ratio stood at 23 per cent with a tier 1 capital ratio of 21.48 per cent.

Varouj Nerguizian, Executive Director and General Manager, said: “This financing initiative translates Bank of Sharjah’s solid standing among the country’s leading commercial banks and the respect it commends within the International banking community. The reduction of the pricing of this facility is a confirmation of the bank’s ever strengthening reputation, thanks to its healthy financial structure and sustained performance. The renewed vigor of the UAE economy is reflected in the Bank’s balance sheet, harnessing opportunities with solid corporate clients through sound lending practices. This financing commitment will allow Bank of Sharjah to continue to address its clients’ dollar funding requirements while facilitating new relationships.”

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