Bank ABC and Emcap arrange $400m loan for BankDhofar

Two of the region’s leading banks – Bank ABC and Emirates NBD Capital (Emcap) – have partnered to arrange an initial $400 million double-tranche syndicated term loan facility linked to the secured overnight funding rate ( SOFR) for BankDhofar.

The two banks acted as joint coordinators, joint underwriters, initial mandated lead arrangers and bookrunners (together the Imlabs) for the BankDhofar loan facility. In addition, Emirates NBD Bank also acted as Facility Agent in connection with the transaction.

BankDhofar has become the first Omani bank and one of the first financial institutions in the region to raise a syndicated term facility linked to SOFR.

The facility comprises a 2-year tranche and a 3-year tranche. It was oversubscribed by more than 1.8x mainly due to appetite for the 3-year tranche with participation from 15 GCC banks and Asian investors. The proceeds will primarily be used to refinance BankDhofar’s upcoming maturing facilities.

The syndication was initially launched at $300,000,000 and was raised to $400,000,000 due to heavy oversubscription from banks.

The facility was signed last month and, thanks to the strong support received from the banks, was then increased recently.

Al Ahli Bank of Kuwait-DIFC Branch, Doha Bank, Gulf Bank KSCP, Gulf International Bank, National Bank of Bahrain, State Bank of India WBB Bahrain, The Arab Investment Company have joined as mandated lead arrangers.

Commercial Bank of Dubai, Mashreqbank National Bank of Ras Al Khaimah joined the facility as Lead Arrangers, while National Bank of Fujairah, National Bank of Umm Al Qaiwain and United Arab Bank joined as as arrangers.

BankDhofar CEO Abdul Hakeem Al Ojaili said that despite the difficult market conditions, the success and oversubscription of this transaction is proof of confidence in BankDhofar and Oman.

“Being the first bank in Oman to price a syndicated facility against SOFR averages represents a significant achievement for us as the industry moves away from the Interbank Offered Rate (IBOR). The transaction also demonstrates BankDhofar’s position as a as a leader in adapting and aligning its systems and processes to embrace change,” he added.

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