AUB CLOSES US$ 1.2 BILLION SYNDICATED DEPOSIT FACILITY
Largest ever by any Arab bank
Ahli United Bank today announced a US$ 1.2 billion 3-year syndicated deposit facility, the largest ever syndicated financing deal by any financial institution in the Middle East, had been signed. The facility saw the participation of a total of 51 banks, and was arranged by ABN Amro, BNP Paribas, Commerzbank, Lloyd’s TSB Bank and Mizuho Corporate Bank. The syndication closed heavily oversubscribed having raised over US$ 1.2 Billion from an initial launch amount of US$ 500 Million.
The syndicate is composed of a variety of international banks. 63% of the banks are from Europe, 28% from the Far East, 8% from North America and 1% from the Middle East. This included 19 new lending relationships for AUB.
“We are delighted with the results of the syndication. The strong participation demonstrates the confidence that the Capital Markets have in our bank and its strategies”, said Fahad Al-Rajaan, Chairman, Ahli United Bank. “The representation from banks from across the world is testimony of the reputation that AUB has achieved in the Banking industry. Of particular satisfaction are the significant contributions by banks in the Far East and North America which complemented our traditional support from European and Middle Eastern banks”, he added.
Ahli United Bank announced a net profit of US$ 164.3 million for the nine month period ended 30 September 2006, an increase of 26% over the same period in 2005 (US$ 130.4 million). Net Interest and other income to 30 September 2006 was US$ 363.5 million (2005 – US$ 237.4 million). As of 30 September 2006, the Group’s total assets stood at US$ 19.1 billion, an increase of 37.4% over 31 December 2005, reflecting a robust growth. The growth was funded by an increase in customers’ deposits by US$ 3.6 billion (+54%) and inter-bank deposits by US$ 1.1 billion (+ 28%) compared to 31 December 2005. AUB group comprises subsidiary and associates banks in Bahrain, Kuwait, Qatar, Iraq, Egypt and the United Kingdom.