First Gulf hires banks for $800 million loan

First Gulf hires banks for $800 million loan

FGB is arranging for this loan facility to support its growth and expansion

September 16, 2012 9:30 by Reuters

First Gulf Bank has mandated eight banks to arrange an $800 million loan to fund its growth and expansion, the Abu Dhabi-based lender said on Saturday.

FGB has mandated Bank of Tokyo-Mitsubishi UFJ Ltd, Citibank, Commerzbank, Deutsche Bank, HSBC, Mizuho Corporate Bank Ltd, National Bank of Abu Dhabi and Standard Chartered as lead arrangers, it said in a statement.

“FGB is arranging for this loan facility to support its growth and expansion in the local and targeted international markets,” Andre Sayegh, CEO of FGB said in the statement.

The facility will help diversify FGB’s sources of funds and improves the funding maturity profile on the bank’s balance sheet, he added.

In January the bank, which is majority owned by the emirate’s ruling family, raised $500 million through a five-year sukuk, part of a $3.5 billion Islamic bond programme it established last year.