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UAE dirhams. Image used for illustrative purpose.
Abu Dhabi-based Ittihad International Investment has arranged a $450 million sustainability-linked revolving credit facility (RCF) with local banks.
The facility was arranged by Emirates NBD, Commercial Bank of Dubai, and First Abu Dhabi Bank as mandated lead arrangers and bookrunners (MLABs) and sustainability joint coordinators, with Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and Emirates Islamic acting as joint arrangers.
The senior unsecured committed RCF has a five-year tenure, with three years committed and a two-time extension option of one year at the banks’ discretion. It also includes an “accordion feature”, allowing for an increase in the facility size.
It is in two tranches, with the first $225 million for general corporate purposes and to replace an existing standby undrawn RCF of $105 million.
The second tranche will be used to replace existing 90-day subsidiary-level working capital facilities which were previously financed on an uncommitted basis - $145 million to settle and replace outstanding working capital facilities and the remaining $80 million to provide additional liquidity source on standby.
CFO Zahi Abu Hamze said the facility contributes to efforts towards an improved credit rating.
Private investment conglomerate Ittihad’s portfolio spans industrial manufacturing, infrastructure, building materials, business services and healthcare, with current investments of around $1.4 billion.
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
