WestLB AG, London, as mandated lead arranger, has announced that following a successful general syndication during which an amount in excess of US$200mn was raised from the market, a debut five-year amortising syndicated term loan facility for Ras Al Khaimah Ceramics Co was increased from its launch amount of US$100mn to sign at US$150mn.

Before the launch of general syndication Gulf International Bank joined the facility as a lead arranger and sub-underwriter. During general syndication HSBC Bank Middle East, Arab Bank, Mashreqbank, Bank fur Arbeit und Wirstchaft and Emirates Bank International joined as senior co-arrangers.

Abu Dhabi Investment Company, Bank of Baroda, BNP Paribas, First Gulf Bank, Oman International Bank and State Bank of India joined as co-arrangers. Bank of Bahrain & Kuwait and Habib Bank, Zurich joined as lead managers.

RAK Ceramics, which is listed on the Abu Dhabi Securities Market, was established in the emirate of Ras Al Khaimah in 1989. Today RAK Ceramics is one of the world’s leading producers of high quality tiles and sanitary ware with current production facilities in the UAE, Sudan, China and Bangladesh with production facilities in India and Iran due to commence operations in 2005.

The company exports products to 125 countries across five continents with its current key markets, outside the UAE, being Europe (France, Germany, UK, Belgium, Greece etc.), Saudi Arabia, Bahrain, Kuwait  Australia, India and China.

There is an option to extend the five-year tenor for a further period of up to three years at the lenders discretion.

Repayment involves five semi-annual instalments equal to 12% of the facility amount commencing 30 months from signing followed by a balloon repayment equal to 40% of the facility amount. The margin is Libor plus 110bp, stepping up to Libor plus 125bp in year four.