Ahli United Bank and Arab Banking Corporation to finance $480m port development in Egypt

Notes and media contacts

For further information, please contact:
Maya Ribeiro, Action Bahrain
TEL: +973 17234553

About DIPCO:

Damietta International Port Company (DIPCO) is an international consortium lead by KGL PI and includes: Damietta Port Authority (DPA) which owns 5% of equity, Aref Group 10%, China Shipping Terminal 20%, KGL PI 30%, General Electric 10%, Terminal Link Company 20% and United Arab Shipping Company (UASC) with 5%.

Since its incorporation in 2004, KGL PI, a subsidiary of KGL holding, has succeeded in becoming a world leader in the field of ports design, construction and management. The company was awarded a 21-year concession agreement to design, construct and manage a container terminal at Sqar port in Ras Al-Khaimah, United Arab Emirates. Completed in accordance as per set schedule, the container terminal is currently considered one of the best in the region in terms of modern infrastructure, containers handling equipment and automation facilities. In Kuwait, the home base of KGL PI, the company operates a container terminal at Shuaiba, 45 Km Southern of Kuwait City, with the state-of-the-art technology in this field.

About ABC

Arab Banking Corporation is a leading international Arab banking group headquartered in the Kingdom of Bahrain, with a regional and international network. ABC provides a full range of retail and commercial banking, investment banking, project and structured finance, corporate finance, discretionary fund management, foreign exchange, derivatives, Islamic banking and financial advisory services in the MENA and international markets in which it offers these services.

ABC's strategy of diversified growth led to the development of its widespread network of branches, representative offices, subsidiaries and affiliates in Arab world countries and international financial centres, including London, Paris, Milan, Frankfurt, New York, Singapore, Sao Paolo, Tehran, Bahrain, Abu Dhabi, Baghdad, Amman, Beirut, Cairo, Tripoli, Tunis and Algiers.

About Ahli United Bank

Ahli United Bank B.S.C. is an offshore and full commercial banking institution based in Bahrain providing retail, commercial and investment banking business, global fund management and private banking services. It is geared towards growth through the development of a larger client base in the Gulf states and through its close partnerships with customers staff and product providers. The evolution of future mergers and acquisitions in the Gulf region remains central to the Bank's expansion strategy. AUB reported a consolidated net profit of $150.7m for the half year ended 30 June 2007, an increase of 39.7% compared to the same period last year. As of 30 June 2007, total assets for AUB stood at $21.5bn (31 Dec 2006 - $20.8bn).

AUB has an effective holding of 75% share in the Bank of Kuwait and the Middle East (BKME). BKME has a 10% market share in Kuwait. BKME achieved a net profit of KD12.6m for the first quarter ended 31 March 2007, an increase of 12.5% compared to the same period last year.

AUB also has a 40% share in Ahli Bank Q.S.C. a commercial bank in Qatar with an enhanced capital base following the 100% participation by AUB in its capital increase. Ahli Bank Q.S.C. achieved a 32.2% higher net profit of QR65.7m for the first quarter ended 31 March 2007 compared to the same period last year. AUB has a 10-year management contract with Ahli Bank Q.S.C.

AUB also entered into a joint venture in 2004 with Bank Melli Iran and Bank Saderat Iran to form Future Bank BSC(c), a joint venture commercial bank in the Kingdom of Bahrain, with an equal one-third shareholding. Future Bank was established on 1 July 2004 with a paid up capital of $99m. Future Bank's net profits for the first quarter ended 31 March 2007 was $5.7m, up by 82.1% compared to the same period last year.

In 2005, Ahli United Bank acquired a 49% share in the Commercial Bank of Iraq, a private commercial banking institution established in Iraq in 1992. Since its inception, Commercial Bank of Iraq has performed consistently well in different business segments and its total assets as at 31 December 2006 stood at IQD154bn (31 December 2005: IQD156bn).

Ahli United Bank, its associate banks and other Gulf financial institutions together acquired an 89.3% in Ahli United Bank (Egypt) S.A.E.(AUBE), [formerly Delta International Bank S.A.E.(DIB)], in August 2006. Established in 1978, AUBE is a full-fledged commercial bank offering retail banking, corporate banking, private banking, project and trade finance and treasury services. Apart from its headquarters in Cairo, the Bank has 17 branches across Egypt.

This year, AUB was named: "Best Bank in the Middle East - 2007" by Euromoney, Global Finance. In 2006, AUB was awarded: "Global Bank of the Year 2006 - Middle East" (by The Banker), "Best Bank 2006 - Middle East and Africa" (by Global Finance); "Best Foreign Exchange Bank - Middle East 2006" (Global Finance); "Best Bank and Bank of the Year 2006 - Bahrain" (Global Finance, Euromoney and The Banker).

AUB's ordinary shares are listed on Bahrain Stock Exchange (BSE) (since August 2000) and Kuwait Stock Exchange (KSE) (since 26 June 2006) and are actively traded. AUB's Class A preference shares are also listed at the BSE since 20 March 2005.

AUB has been reaffirmed foreign currency long-term rating of A- and short-term rating of A2 with a stable outlook from Capital Intelligence in June 2006 and a long-term rating of A- with a stable outlook from Fitch Ratings in November 2006.