The Asian Banker Thursday, 18 July 2024

NBE signs $1B syndicated term loan

5 min read

National Bank of Egypt S.A.E. (NBE) announced the successful signing of a $1 billion senior unsecured syndicated term loan facility on 23 May 2024.

Together, Emirates NBD Capital, Mashreqbank PSC and Firstrand Bank—acting through its Rand Merchant Bank division— acted as the global coordinators. Emirates NBD Capital acted as the syndication agent, while Mashreqbank PSC acted as documentation agent. First Abu Dhabi Bank PJSC is the appointed facility agent.

Abu Dhabi Commercial Bank PJSC, Abu Dhabi Commercial Bank – Egypt, Africa Finance Corporation, Al Ahli Bank Of Kuwait K.S.C.P. (DIFC Branch), Arab Banking Corporation (B.S.C.), Emirates NBD Capital, First Abu Dhabi Bank PJSC, Firstrand Bank (acting through its Rand Merchant Bank division), HSBC Bank Middle East, Mashreqbank PSC, National Bank of Kuwait S.A.K.P, Bahrain Branch, Standard Chartered Bank and The Mauritius Commercial Bank acted as the initial mandated lead arrangers and bookrunners (the IMLABs) and Commerzbank Aktiengesellschaft, Doha Bank Q.P.S.C., Eastern and Southern African Trade and Development Bank, Sumitomo Mitsui Banking Corporation - DIFC Branch, Dubai, The National Bank of Ras Al-Khaimah (P.S.C), and The Standard Bank of South Africa acted as the mandated lead arrangers and bookrunners (the MLABs) for the facility.

Facility will be used for general corporate funding purposes and trade finance requirements of NBE.

Despite the market volatility amidst the current geopolitical conditions, the transaction received an overwhelming response from the market. Following strong global demand from 19 institutions from across the globe, including from Western Europe, Asia, Africa and the Middle East, the facility was 1.7 times oversubscribed from the original launch amount of $750 million, at senior mandate level. NBE choose to opt for green shoe option and closed the transaction at $1 billion post scale back.

The success of the deal emphasises the strength of NBE's banking relationships and credit strength, as well as demonstrates the market’s positive sentiment and trust in the Egyptian economy.

NBE indicated that the successful closure of the transaction with oversubscription of 1.7 times conveys a strong indication of the international perception toward NBE’s stable financial position and a belief in its role to support the economy as a whole.

The wide range of international banks joining the transaction comes as a proof of NBE's extensive relations and follows its strategy of diversified funding sources.

"We would like to extend our sincere appreciation to our coordinators for a well-arranged milestone transaction and our financing partners for their long-standing commitment to NBE," the bank said.

 Re-disseminated by The Asian Banker

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