ABC closes USD175 million syndicated term loan facility for Kuwait's Commercial Facilities Company

Syndication received strong support from the bank market and as a result, the facility amount was increased from the initial US$150 million to US$175 million. Syndicate banks include leading institutions from the GCC, North Africa and Europe.

The signing ceremony was held at Arab Banking Corporation's headquarters in Bahrain today and was attended by senior representatives of CFC, ABC, and participating banks. At the signing ceremony, Mr. Abdullah Al Humaidhi, Chairman of CFC, commented on the solid performance of the company and Mr. Abdulmagid Breish, Deputy Chief Executive and Chief Banking Officer of ABC said, "ABC's close relationship with CFC spans back more than 20 years, and arranging this syndication strengthens the foundation of a long-standing partnership." He also extended his thanks to all the participating banks for their support.

CFC was established in 1977 as the first Kuwaiti closed shareholding company specialized in offering consumer finance facilities in Kuwait. It has developed its business to become the leading specialist provider of consumer credit in its domestic market and is also the largest consumer finance company in terms of total assets and shareholder equity. As of 31st December 2006, CFC's consolidated total assets and shareholder equity were KD368.6 million and KD144.3 million respectively. It is also listed on the Kuwait Stock Exchange and had a market capitalization of KD284.9 million as of 31st December 2006.

Capital Intelligence has assigned CFC an A- rating with a stable outlook.

The 10-strong syndicate comprises the following banks:

Bookrunner & Mandated Lead Arranger:
Arab Banking Corporation (B.S.C.)

Mandated Lead Arrangers:
Qatar National Bank S.A.Q.
Raiffeisen Zentralbank Österreich Aktiengesellschaft

Lead Arranger:
Riyad Bank London Branch

Arranger:
Doha Bank

Co-Arrangers:
National Bank of Bahrain B.S.C.
National Bank of Egypt (UK) Limited
Union Tunisienne de Banques « U.T.B »
Bahraini Saudi Bank B.S.C.

Lead Manager:
Bank Sohar SAOG