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Abu Dhabi: Investcorp Capital plc (the “Company” or “Investcorp Capital”), an investor in private markets and provider of capital financing services in the alternative investments space, has agreed a USD 800m refinancing by way of a revolving credit facility (RCF) with an international consortium of banks.
The new facility will enable Investcorp Capital to repay an existing USD 600m facility to Investcorp Group, which was implemented when the Company listed on the ADX in November 2023.
The new facility was fully underwritten and arranged by five banks: Abu Dhabi Commercial Bank PJSC, Al Ahli Bank of Kuwait K.S.C.P. (DIFC Branch), Commercial Bank of Dubai PSC, Gulf International Bank B.S.C. and HSBC Bank Middle East Limited. While the target for the new facility was also USD 600m, strong participation interest from major regional and international banks has allowed Investcorp Capital to secure an additional USD 200m. The facility is a four-year term with a one-year extension option and is at better pricing terms than the existing facility from Investcorp Group.
The financing will be used to build upon the Capital Financing Services (CFS) line of Investcorp Capital’s business, which seeds capital for fund launches and provides underwriting deal placement for new business.
Investcorp Capital’s H1 2024 earnings results published in February delivered a very strong performance from its CFS business, with a 47% increase in revenues year-on-year.
The appetite from banks indicates a strong belief in the Investcorp Capital business and its strategy. The Company reported a steady performance in its first financial half against a challenging market backdrop and re-committed to delivering a dividend yield of at least 8% per year to shareholders, mostly driven by growth in Net-Asset Value (NAV) from profits generated.
The Chairman of Investcorp Capital, Mohammed Alardhi, commented: “Securing financing beyond our initial target is testament to the appeal of Investcorp Capital and a recognition of the potential in the global underwriting market, which is seeing continued momentum in 2024.”
Abbas Rizvi, Chief Financial Officer of Investcorp Capital, added: “We’re delighted to welcome our new business partners to Investcorp Capital. Our CFS business achieved 47% y-o-y growth and, with this successful refinancing at competitive terms, we are well-positioned to grow our business and to deliver solid returns to our stakeholders.”
About Investcorp Capital plc
Investcorp Capital is an alternative investment company that invests in private markets and provides capital financing services. It offers investors exposure to a global portfolio of investments across various asset classes, including those that have been and will continue to be carefully selected by Investcorp Group. Investcorp Capital covers strategies across corporate investments, global credit, real estate and strategic capital, to generate value and recurring income by receiving dividends, collecting rents, financing fees and interest.
Investcorp Capital was founded by Investcorp Group, a leading independent manager of alternative investments, with approximately $50 billion in assets under management (including assets managed by third parties). Investcorp Group has over four decades of experience and expertise in delivering attractive and consistent returns across multiple strategies, sectors and geographies.
Investcorp Capital is listed on the Abu Dhabi Securities Exchange (ADX) under the symbol “ICAP”. For more information, please visit www.investcorp-capital.com.