Al-Ahli signs USD165m syndicated loan agreement with 21 international banks

Mr. Ali Hilal Al-Mutairi, Deputy Chairman and Managing Director, represented Al Ahli Bank in signing the agreement along with representatives of the group of 21 international banks participating in the syndication. The loan was jointly arranged by Arab Banking Corporation (B.S.C.) and HSBC .

Commenting on the facility, Mr. Al-Mutairi said "the syndication was extremely successful, with a large number of international banks agreeing to participate. As a result the facility was increased from the original launch amount of US $ 100 million to $165 million, with the finance raised within a three week period'.

Mr Al-Mutairi attributed this impressive demand for participation in the facility to a number of factors. Foremost among them is the strong credit rating of Al-Ahli Bank in international markets, which is a reflection of its sound asset quality, strong capital base and solid liquidity ratios. Another important element was the Bank's continually improving financial performance which has resulted in an increase in net profits of 37% over the past two financial years, thereby making ABK "the fastest growing bank in Kuwait".

Mr Al-Mutairi added "Other important factors that have substantially contributed to the willingness of international banks to participate in the facility. These included the high sovereign rating which Kuwait enjoys - a reflection of its extensive oil assets and large foreign exchange reserves - as well as the stability of oil prices and generally improved investment climate in the region".

Mr David Moleshead, Head of Debt Finance and Advisory Middle East, HSBC, commented "The result of this syndication is a good benchmark for Al Ahli in the international loan market, with a strong and widely dispersed group of international and regional banks for the transaction. We are very pleased to have had the opportunity to jointly arrange such an successful debut syndicated loan."