Unicorn Investment Bank syndicated facility is oversubscribed and closes at US$125,000,000
Bahrain, 27 January 2008 - Unicorn Investment Bank B.S.C. (c) (Unicorn) announces the successful close of a US$125,000,000 3-year Syndicated Commodity Murabaha Facility arranged on its behalf by Dubai Bank PJSC (Dubai Bank) and Raiffeisen Zentralbank Österreich AG (RZB) (jointly the Initial Mandated Lead Arrangers, Co-Underwriters and Joint Bookrunners). Dubai Bank is acting as Facility Agent and Dawnay, Day & Co. Limited is the Commodity Supplier.
The facility, which was launched at US$100,000,000, was significantly oversubscribed, attracting a great deal of interest from financial institutions across Europe, the Middle East and Asia. Fifty percent of subscriptions were from non-GCC financial institutions, with 10% of subscriptions originating from Asia. Of the total amount raised, almost 25% of the financing was placed with Islamic investors.
The funds raised will be used for general corporate purposes in support of Unicorn’s business plan and international growth model.
Commenting on the close of the transaction, David Pace, Unicorn’s Chief Financial Officer, said: “The overwhelming success of this syndication, given the current global liquidity squeeze, and the participation of such a broad range of institutions both regionally and internationally attest not only to the strong reputation that Unicorn enjoys in the international financial community but also to the growing international importance of Islamic finance. 2008 will be a milestone year for Unicorn and the additional funding provided by this facility will assist us in pursuing our global growth strategy.”
Ikbal Daredia, Head of Capital Markets and Institutional Banking at Unicorn, commented: “The tremendous success of this transaction, particularly given the challenging global financial environment, is an important endorsement of Unicorn’s track record and global expansion strategy. We are grateful to each of the participating banks for their support of Unicorn.”
SUMMARY DETAILS OF THE FACILITY:
| Borrower: | Unicorn Investment Bank B.S.C. (c) |
| Launch Amount: | US$100,000,000 |
| Close Amount: | US$125,000,000 |
| Facility Type: | Syndicated Commodity Murabaha Facility |
| Purpose: | General corporate purposes |
| Term: | 3 years |
| Repayment: | Bullet on final maturity |
| Margin: | 6 months US$ LIBOR + 1.70bps per annum |
| Structure: | The Commodity Murabaha structure has been reviewed and accepted by the Shari’ah Supervisory Boards of Unicorn Investment Bank and Dubai Ban |
PARTICIPANTS:
Initial Mandated Lead Arrangers, Co-Underwriters and Joint Bookrunners:
Dubai Bank PJSC
Raiffeisen Zentralbank Österreich AG
Facility Agent:
Dubai Bank PJSC
Commodity Supplier:
Dawnay, Day & Co. Limited
Mandated Lead Arrangers:
Arab National Bank
Bank Muscat International B.S.C. (c)
Kuwait Finance House (Malaysia) Berhad
Kuwait International Bank
HypoVereinsbank - Member of the UniCredit Group
Lead Managers:
Al Salam Bank
Bahrain Islamic Bank B.S.C. (c)
Doha Bank
Jordan International Bank plc
MEGA International Commercial Bank Co Ltd
National Bank of Fujairah Psc
The Arab Investment Co. S.A.A.
Tunis International Bank
Managers:
AlBaraka Islamic Bank B.S.C. (EC)
Banque BIA
BLOM Bank SAL
Hua Nan Commercial Bank Ltd
National Bank of Umm Al-Qaiwan psc