BMB refinances USD75 million loan

The facility, which matured in December 2002, has been in refinancing negotiations since September of 2002.

The refinancing now opens the way for BMB to proceed with two-year old plans to begin a capital increase exercise aimed at augmenting the Bank's capital and liquidity positions. An extra-ordinary general meeting will be called in the first quarter of 2005 in order to proceed with these plans, after which trading in the Bank's shares can resume on the Bahrain Stock Exchange.

In commenting on the refinancing, BMB Chairman Sheikh Ali Jarrah Al-Sabah said:

'We are extremely pleased that we have been able to agree mutually acceptable terms with the syndicate for the refinancing. We would like to thank the Bahrain Monetary Agency for its vital role in concluding these negotiations and for the Agency's continued and ongoing support of the Bank. We would also like to express our appreciation to our shareholders for their unwavering commitment and patience.'

Chief Executive Albert I Kittaneh added:

'We would like to thank the lending syndicate, as well as the Arab Banking Corporation as Agent, for their cooperation during the negotiations and we look forward to speedily concluding our plans for the rights issue. Despite the difficulties of the past three years, the length of the negotiations, and the absence of inter-bank lines, BMB has continued to operate and stand on its own feet. We look forward to revitalizing our operations and restoring the Bank to profitability.'

Bahrain Middle East Bank (E.C.) was established as an Offshore Banking Unit in 1982. Although currently not trading, its shares are listed on the Bahrain Stock Exchange under (BMEB.BH). The Bank's shares are held by over 14,000 shareholders throughout the Gulf.