22-05-2013
Abu Dhabi Islamic Bank - Egypt arranged and signed the First Islamic "Ijara" Structure Syndication Worth $150 Millio for Maridive and Oil Services SAE
Abu Dhabi Islamic Bank - Egypt arranged and signed the First Islamic "Ijara" Structure Syndication Worth $ 150 Million for Maridive and Oil Services SAE
Cairo- May 22nd - 2013 – Confirming its leading role in the Egyptian Islamic Banking, Abu Dhabi Islamic Bank- Egypt (ADIB- Egypt) arranged and signed the first of its kind Ijara Structure Syndication in Egypt. ADIB- Egypt as Initial Mandated Lead Arranger (IMLA) and the Global Coordinator signed the syndicated facility with its Head office; ADIB-Emirates, Arab African International Bank, Banque du Caire and the Arab International Bank as IMLAs. ADIB Eypt also assumed the Facility and Security agent roles
ADIB-Egypt was mandated by Maridive to arrange the syndicated facility to finance the company’s new expansions, financial re-structuring and to finance its current and future investments, which are expected to exceed $300 million.
Banks received final approvals for $235 million (a coverage of 160%) however, the company decided to keep the facility at $ 150 million, with a top up option to finance the existing capital expenditure (mainly vessels) to meet the increasing demand on its services, especially in Latin America where the company has recently won contracts with Petrobras (Brazil) and Petróleos (Venezuela). Both companies are among the world top offshore oil exploration companies.
This deal is the first syndicated finance deal to be signed in Egypt since the beginning of 2013 and is the second for ADIB-Egypt after that of East Delta Electricity Production Company, which was signed in October 2012 with Banque Misr, Egyptian Gulf Bank, Al Baraka Bank - Egypt, Bank Audi and the United Bank.
ADIB-Egypt has also signed as IMLA, the Term Sheet of Al Nouran Sugar along with the IMLAs Bank Audi and Banque Misr, to arrange an Islamic finance facility for EGP 1.5 billion through Estessna'a and Ijara Mawsoufa Bel Zemma structure.
Islamic banking market has recently witnessed booming activity, both in the arrangement of corporate syndicated financing and the issuance of corporate Sukuk, which is expected to be active once the executive regulations for the Sukuk Law are passed.
