The Bank of Sharjah (BOS) issued today a statement in relation to the news that appeared in some local newspapers dated July 11, 2011, which quoted a misleading report in the magazine Middle East Economic Digest (MEED). Bank of Sharjah would like to clarify some of the points that have been raised regarding the syndicated loan:
- Bank of Sharjah has appointed a group of banks to arrange a new two-year loan deal for a minimum of USD 100 million for its general corporate purposes.
- This is not a restructuring to the existing one-year club deal that was arranged last year. This club deal is due on July 29, 2011 and will be paid at maturity. The bank enjoys high liquidity and the purpose of the deal is to source US dollars to manage the bank’s assets and liabilities and currency mismatches.
- Moreover, the existing US$150 million club-deal facility exceeded by 50 per cent the initial target amount of US$100 million, highlighting the lenders’ confidence in the bank.
- It was the first term-loan to a GCC-based bank since the start of the global economic downturn, and the success of this transaction is a testament to Bank of Sharjah’s financial strength and reputation. It also reflected growing demand for sound investment-grade assets in the region.
- Bank of Sharjah has appointed Germany’s Commerzbank as the lead arranger in addition to the National Bank of Abu Dhabi, Spain’s Intesa Sanpaolo, and Wells Fargo of the US, to arrange the new deal.
