Burgan Bank, Kuwait’s third-largest bank by assets, has closed a US$350mn, three-year club loan with a group of regional and international banks.
Citi, Commerzbank, First Abu Dhabi Bank, HSBC, Mizuho, Standard Chartered and Wells Fargo acted as mandated lead arrangers and bookrunners. Wells Fargo also acted as co-ordinator, documentation and facility agent.
The financing will be used for general financing purposes, including trade.
Burgan Bank writes in a statement that the facility pays a margin of 95 basis points per annum above the US$ Libor rate and has a bullet repayment at the end of the three-year tenor.
The bank was able to extend the tenor of the facility from its previous two-year club loan, which was executed in December 2015.
It believes the deal provides a “strong validation” of its credit quality and “endorses its attractiveness as a borrower”.