Bukhatir signs murabaha deal

Bukhatir Investments in the United Arab Emirates (UAE) has signed a US$215mn syndicated loan facility, including a US$50mn commodity murabahaand a US$165mn term loan facility. The facility includes an oversubscription of US$15mn.

WestLB, through its London branch, acted as sole underwriter, bookrunner and initial mandated lead arranger on the financing.

Joining as mandated lead arrangers during general syndication of the conventional facility are HSBC, Bank of Sharjah and First Gulf Bank. Lead arranger is Landesbank Baden-Wurtemberg. Managers are The Arab Investment Company, Bank of Taiwan, Banque BIA, British Arab Commercial Bank, Chinatrust Commercial Bank, First Commercial Bank, Land Bank of Taiwan, The International Commercial Bank, Maybank, Mega International Commercial Bank, and Hua Nan Commercial Bank.

The commodity murabaha was supported by European Arab Bank, Kuwait Finance House, and Dubai Bank. Alpen Capital acted as advisors to the syndication.

The facility includes an amortising term loan facility with a five-year tenor and a margin of 110 basis points over Libor for the first three years, rising to 125bp in the final two years.
There is also a three-year revolving facility and commodity murabaha that pays a margin of 105bp over Libor.

The Bukhatir Group is one of the largest business houses in the UAE with interests in construction, trading, information technology, retail, and real estate.