Emirates NBD to raise $550m ACC loan
Dubai-based bank Emirates NBD and two other lenders have been appointed as mandated lead arrangers and joint underwriters by Al Arrab Contracting Company (ACC), a unit of Saudi Arabia's Al Rajhi group, for a $550 million (Dh2.01bn) term loan to partially finance the construction of 10 towers located in Pearl of Qatar Project. The other two banks are Qatar National Bank and Arab Bank.
The facility will be launched for general syndication in due course and the three banks will be bookrunners. The agreement was signed by Ahmad Suliman Al Rajhi, Chairman of ACC and senior management members from the three banks.
Bahjat Mohamed Said, President of ACC, said: "The financing marks the fortification of the relationship between ACC and these three banks who clearly share our vision."
Qatar's real estate sector has been witnessing an accelerated rate of growth in the last few years. The Pearl, a man made island 350 metres offshore of Doha was created by United Development Company through reclamation of 4.1 million sq m of land in the Gulf. It is envisaged that the Pearl will eventually house more than 41,000 residents in an up-scale, multi-cultural residential community
Rajan Khetarpal, Deputy General Manager and Head of Global Debt Capital Markets and Overseas Corporates, Emirates NBD, said: "Emirates NBD is strategically positioning itself as a frontrunner in debt capital markets in the region. The deal strengthens our relationship with the Al Rajhi Group and we are honoured to have been selected to co-lead manage the transaction."
Abdulla Mubarak Al Khalifa of Qatar National said: "QNB has been a strong ally of the real estate sector not just in Qatar but in other countries of Middle East & North Africa as well. The bank has been playing an important role in financing real estate development projects in Qatar."
Saeed Abu Gharbieh, country manager of Arab Bank, said: "As always, Arab Bank continues to play a key role in the growth of the Mena region economies providing its accumulative experiences over the past 78 years to join forces with those entrepreneurs who add value."
Established in 1983, ACC is a general contracting company with activities all over the region. ACC's core business sectors are construction and related manufacturing. The firm is now Saudi's third largest contractor by value of contracts won in 2007.
Loan scheme
Emirates NBD yesterday launched a special scheme for UAE nationals to offer finance amounts of up to Dh2 million to meet both their business and personal finance needs.
Emirates NBD General Manager for Consumer Banking and Wealth Management Jamal Bin Ghalaita said: "With amounts of up to Dh2 million and extended repayment periods, we are confident that this programme will be very well received by nationals in the country."