United Gulf Bank (UGB) has mandated Abu Dhabi Islamic Bank (ADIB), Bank Arbeit und Wirtschaft (Bawag), Standard Bank Plc and WestLB AG, London as mandated lead arrangers to arrange a three-year mudaraba restricted with revolving commodity murabaha facility.
SB and WestLB will act as bookrunners with Standard acting as facility agent. ADIB will act as shari ‘a adviser. The mandated lead arrangers have underwritten the murabaha in full.
Pricing of the murabaha is six-month Libor + 100 bp profit margin plus arrangement fee.
UGB, the investment banking arm of the Kuwait Investment Projects Company Holding (Kipco) group, was established in 1980.
UGB is quoted on the Kuwait Stock Exchange (KSE) and the Bahrain Stock Exchange (BSE) and has a BBB long-term rating by Capital Intelligence. Its major shareholders include Kipco Group and Burgan Bank, both of Kuwait.
UGB manages a diversified portfolio of investments in wealth and asset management, commercial banking, real estate, telecommunications, private equity and quoted securities.
UGB and its subsidiary Kipco Asset Management Company (Kamco) have a proven track record of successful investment banking transactions including corporate finance advisory, new issue placement and underwriting, mergers and acquisitions bond issuance as well as investment product structuring and placement. Assets under management exceed US$4bn.