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Bank of Sharjah closes $150 mln term-loan

Proceeds to be used for general corporate purposes.

August 22, 2010 2:46 by

The UAE’s Bank of Sharjah closed a $150 million club term-loan, higher than its initial target of $100 million, reflecting growing demand for investment grade assets in the region, the lender said on Sunday.

The loan, which will be used for general corporate purposes, is the first term loan to be closed by a bank based in the Gulf Cooperation Council (GCC) since the financial crisis, Bank of Sharjah said in a statement.

The company added that the facility will carry a margin of 1.5 percent per year and has a maturity of one-year. It will replace a $200 million term loan, which closed in 2007, and was repaid in June 2010.

Lead arrangers for the loan were Commerzbank Aktiengesellschaft, National Bank of Abu Dhabi, Intesa Sanpaolo, UniCredit Group and Wells Fargo Bank.

Shares of the mostly UAE-focused corporate lender closed at 1.75 dirhams on Thursday and have yet to trade on Sunday.

(Reporting by Shaheen Pasha; Editing by Jason Benham)

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