Gulf Petroleum said it has raised US$150 million in a syndicate loan of an eight-year maturity to finance the company’s growth plans and global activities.
Emirates NBD led the syndicate of banks which include Al Ahli Bank of Kuwait, United Arab Bank, Bank of China, ICICI Bank, Mashreq Bank amongst others. National Bank of Fujairah will be the security agent for the financing. IL&FS acted as the Financial Advisor, GP said in a statement.
The loan was competitively priced with a spread over the London Interbank Offered Rate (LIBOR). Throughout the planning and syndication phases, GP worked closely with its stakeholders, IL&FS and the syndicate of banks.
“Amidst current market conditions, it is a testament to our operations and business plans that we were able to raise this amount of capital,” said GP’s group director, Prerit Goel. “The banks involved have all expressed their admiration of our robust growth plans. As a group, we are determined to stay the course and to deliver on our long-term strategic ambitions.”
The company is currently studying plans to tap capital markets with a strong focus on the Islamic finance and Sukuk market in Asia particularly, Malaysia and Indonesia, he added.
Salah Mohammed Amin, executive vice president, corporate banking at Emirates NBD said; “The positive response for this facility confirms the interest in key sectors in the UAE and the trust endorsed to Gulf Petrochem Group’s strong financial position despite the difficult market conditions. Since the beginning of the year, we have arranged a number of syndicated loan transactions. This transaction further cements our footprint in the local market.”