Qatar's Gulf International signs $170 million loan to fund buy

Qatar’s Gulf International signs $170 million loan to fund buy

GIS, which has interests in several sectors, including transport, insurance and oil services, said in April it was buying the unit for a provisional price of 353.1 million riyals ($97 million).

June 4, 2012 5:31 by Reuters

Qatar’s Gulf International Services (GIS) has signed a $170 million sharia-compliant loan mainly to fund its purchase of Qatar Petroleum’s fully-owned subsidiary Amwaj Catering Services, according to a bourse filing on Monday.

GIS, which has interests in several sectors, including transport, insurance and oil services, said in April it was buying the unit for a provisional price of 353.1 million riyals ($97 million).

The Islamic loan will be used to fund the purchase of Amwaj and to subscribe to a capital increase by GIS’ majority-owned subsidiary Gulf Drilling International Co, the company said.

GIS owns 70 percent in Gulf Drilling, according to the drilling service provider’s website.

Qatar Islamic Bank, BARWA Bank, Qatar International Islamic Bank and Arab Petroleum Investments Corporation (Apicorp) provided the financing, the statement added.

($1 = 3.6407 Qatar riyals)

(Reporting by David French; Editing by Dinesh Nair)