Daewoo Engineering inks $200m Islamic syndicated facility

Daewoo Engineering inks $200m Islamic syndicated facility
The facility will be allocated for funding working capital requirements
Emirates NBD
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Dubai – Mubasher: South Korea’s Daewoo Engineering and Construction (Daewoo E&C) on Tuesday announced completing a $200 million dual-tranche (conventional and Islamic) syndicate term facility.

The facility was signed on 30 January, according to Daewoo's statement.

“The transaction was initially launched at $100 million, which got oversubscribed by two times and was eventually upsized to $200 million; a testament to Daewoo’s growing global reputation stemming from its strong commercial competitiveness and extensive technical expertise,” the company commented.

Emirates NBD Capital Limited (EMCAP) acted as sole mandated lead arranger and bookrunner (MLAB) for the transaction, which included eight other regional and international banks.

“This facility is part of our company’s conscious strategy to proactively tap new liquidity, especially in the GCC financial markets which will potentially auger well for future financing requirements in relation to our Middle East projects,” Inhwan Cho, executive vice president of Daewoo E&C, said.

The leading Korean construction company noted that the facility is structured as a two-year bullet funding comprising both Conventional and Murabaha tranches.

The facility will be allocated for funding working capital requirements for the company’s overseas projects, Daewoo noted.

“The overwhelming success of this deal reaffirms our market position in the region as the “go-to” bank for international clients looking to tap Middle Eastern liquidity, in addition to global appetite,” Fahad Abdulqader Al Qassim, CEO of Emirates NBD Capital, commented.