First Gulf Bank signs USD 750 million loan facility

The deal was signed in Abu Dhabi today by the Bank's newly appointed Chief Executive Officer André Sayegh.

The move was made in consultation with the original mandated lead arrangers - the Bank of Tokyo Mitsubishi UFJ, Barclays Capital, Calyon Corporate and Investment Bank (Calyon), Commerz Bank AG, Gulf International Bank (GIB) and Standard Chartered Bank.

First Gulf Bank announced that a total of US$ 838 million in subscriptions and commitments had been received from 32 Gulf and international banks. In view of the anticipated growth potential in the UAE for various infrastructure projects, including oil and gas, power etc, the decision was taken to increase the original funding from US$500 million by 50 per cent to $750 million

"We are delighted with the response received so far. It is clear evidence of the confidence that international and local banks have in First Gulf Bank's strength. The subscriptions raised will allow us to further expand and achieve considerable growth,"

said André Sayegh.

The agent bank in the deal is GIB, with the Bank of Tokyo Mitsubishi UFJ, Barclays and Calyon, acting as the book runners for the transaction.

First Gulf Bank is one of the UAE's largest equity holding banks. From its Abu Dhabi headquarters it is predominantly a corporate banking institution, providing treasury and investment services, with important retail activities.

First Gulf Bank generated a net profit of AED 1.056 billion in the 2005 financial year and with assets of AED 26.28 billion. The return on average equity rose to 22 per cent in 2005 compared with 19.2 per cent in 2004.

In July last year the Bank raised an AED 5 billion (US$ 1.4 billion) rights issue to fund future growth, positioning itself as one of the largest equity-based banks in the UAE. Its BIS Capital Adequacy ratio was 37.6 per cent by the end of 2005.

The Bank has announced its intentions of expanding its local and regional presence with new branch and product launches in addition to making selective acquisitions.

First Gulf Bank is rated A- by Capital Intelligence and BBB+ with positive outlook from Fitch Ratings.