The Eastern and Southern African Trade and Development Bank (TDB) has closed a US$450mn syndicated term loan facility, upsizing its debut Middle East-focused conventional and Islamic syndication that was signed in December 2017.

The deal is split across two-year and three-year bullet repayment tranches, as well as conventional and Islamic tranches, and has been funded in US dollars and euros. Proceeds will be used for refinancing purposes and for meeting TDB’s trade financing and general corporate requirements.

The transaction was initially launched at US$250mn to investors across the Gulf Cooperation Council (GCC), and received a strong response from the market, with facilities oversubscribed by 1.8 times. Aggregated commitments of US$702mn came from 20 banks across the region.

“The high oversubscription reveals the high levels of appetite for the TDB name,” says TDB president and chief executive Admassu Tadesse. “The participation in the transaction exceeded our expectations and we are very pleased with the excellent work of our financing partners. This will fuel our managed growth strategy and deepen the growing cooperation with institutional investors in the Gulf region.”

Citi, Emirates NBD Capital Limited, First Abu Dhabi Bank, Mashreqbank and MUFG acted as mandated lead arrangers and bookrunners on the transaction. Additionally, Mashreqbank acted as the structuring bank and documentation agent, Emirates NBD Capital Limited acted as the marketing and roadshow agent, and First Abu Dhabi Bank acted as the global agent, conventional facility agent and the Islamic investment agent in relation to the facilities.