Bukhatir gets $215m syndicated loan

Bukhatir Investments has recently signed a $215 million (Dh790m) syndicated loan facility, including a $165m term-loan facility and a $50m commodity Murabaha. This includes an oversubscription of $15m.

WestLB AG, London Branch, acted as sole underwriter, book-runner and initial mandated lead arranger on the debt financing. HSBC Bank Middle East, Bank of Sharjah and First Gulf Bank joined as mandated lead arrangers in the general syndication of the conventional facilities along with Landesbank Baden-Württemberg as lead arranger.

The managers were the Arab Investment Company SAA, Wholesale Bank, Bank of Taiwan, Banque BIA, British Arab Commercial Bank, Chinatrust Commercial Bank, First Commercial Bank, Land Bank of Taiwan, Offshore Banking Branch, the International Commercial Bank, Maybank, Mega International Commercial Bank and Hua Nan Commercial Bank.

The commodity Murabaha was supported by European Arab Bank, Kuwait Finance House (Malaysia) and Dubai Bank. Alpen Capital acted as advisers to the syndication.

The facility includes a amortising term-loan facility with a maturity of five years and a margin of 110bps over Libor for the first three years stepping up to 125bps in years four and five. There also is a three-year revolving facility and a commodity Murahaba facility with a margin of 105bps over Libor.

AR Bukhatir, chairman of the group said: “Such extensive support underscores the market’s confidence in the expansion and investment plans of the group.”

Dr Bhaskar Banerjee, the executive director, said the oversubscription was quite an achievement at the time of a global financial crunch.