Kuwait’s Burgan Bank has signed an inaugural US$350mn, two-year club facility with a group of local and international relationship banks.

Commerzbank, Emirates NBD, HSBC, National Bank of Abu Dhabi, Société Générale, Standard Chartered and Wells Fargo acted as mandated lead arrangers. Wells Fargo is also acting as co-ordinator, documentation and facility agent.

The bank writes in a statement that the facility pays a margin of 105 bps per annum above the three-month US$ Libor rate and has a bullet repayment at the end of the two-year tenor. The financing will be used for general financing purposes.

Kuwait’s third-largest bank by assets, Burgan Bank upsized the facility from the original target of US$300mn. The bank believes this is a sign of confidence in the lender despite the current tight market conditions in the Middle East.