Complex Made Simple

FGB announces deal with Dalma Energy as it takes top spot for syndicated loans in UAE

FGB, one of the leading banks in the UAE, looks to maintain strong growth in 2015 having already closed a USD 313.7 million secured syndication facility on behalf of Dalma Energy. The deal follows recent news that during 2014 the bank’s Wholesale Banking Group became the leading arranger for syndicated loans in the UAE.

In 2014, FGB extended USD 2.65 billion in credit – more than five times the amount offered by the bank in 2013 and the highest volume for FGB since 2007. Having climbed from tenth position in 2013, to number one in 2014, FGB is currently the top mandated lead arranger/loan arranger in the UAE, gaining the largest increase in market share amongst its competitors last year.

The bank has also secured second position for syndicated loans in the MENA region, from 34th place in 2013, and is the third leading Islamic loan mandated lead arranger in the EMEA region, moving up from 21st position for the previous year.

Simon Penney, Head of Wholesale and International Banking, said: “Our Debt Markets and Syndications division, which led the deal, was first established in September 2013, so reaching the number one position locally and coming in second for the MENA region is an incredible achievement in such a short space of time. We’re also very pleased to see our efforts in Islamic financing paying off, and reaching this position as third leading Islamic loan mandated lead arranger is fantastic news.”

Since the establishment of the Debt Markets and Syndications division, FGB has worked on a number of significant Islamic and conventional deals for clients across various sectors, including real estate, hotel development, oil and gas, manufacturing, food, aircraft and shipping.

The bank acted as sole underwriter and mandated lead arranger for a USD 313.7 million seven-year senior secured syndication facility on behalf of international drilling contractor, Dalma Energy. The proceeds of the funded facility were used to refinance existing debt, whilst the unfunded facility of USD 13.7 million was used to re-issue guarantees.

Steve Perry, FGB’s Head of Debt Markets and Syndications, said: “As Dalma Energy’s operations are based in several international locations, the transaction was a complex one. We overcame this challenge however, working closely with the client’s management to successfully establish a well-structured security package and deal structure. This was a significant deal for the bank, cemented our position as the UAE’s top mandated lead arranger. The transaction also supported our strategy to structure major transactions and then to distribute. We are continuously working towards establishing ourselves as a lead advisory, underwriting and distribution bank.”

In line with WBG’s growth strategy FGB has strengthened its Debt Capital Markets business with the appointment of Giuseppe Ruggiero, ex-Goldman Sachs Group Inc. banker.

Dalma Energy is the third largest owner of land drilling rigs in the MENA region. The company owns and operates 31 land rigs throughout the Gulf and North Africa and has a range of national and multinational clients, including Saudi Aramco, Petroleum Development Oman, Sonatrach, CEPSA and BP.

Al Qahtani Investments LLC, the parent company of Dalma Energy, is majority owned by Abdel Hadi Abdullah Al Qahtani & Sons Co established in 1948 with a footprint on four continents, is a leading and diversified Saudi Group involved in oil & gas manufacturing & services, logistics & trading and Al Nasser Investments, a subsidiary of Al Nasser Holdings LLC, an Abu Dhabi based Group operates in MENA specializes in oilfield services, retail, manufacturing in steel, power, polymers, cathodic protection, real estate and financial investments.