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National Bank of Egypt signs $1bn syndicated loan; regional, international entities partake -Update

National Bank of Egypt signs $1bn syndicated loan; regional, international entities partake -Update
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Cairo – Mubasher: The National Bank of Egypt (NBE) has announced, on 19 June 2024, the successful signing of a $1 billion senior unsecured syndicated term loan facility in which several regional and global financial institutions participated.

The facility agreement was penned on 23 May 2024, aiming to support general corporate funding purposes and trade finance requirements of NBE, according to a press release.

The Egyptian borrower stated that the transaction witnessed an oversubscription of 1.7 times from the original launch amount of $750 million at senior mandate level. Meanwhile, NBE chose to opt for green shoe option and closed the transaction at $1 billion post scale back.

The transaction saw robust global demand from 19 institutions in Western Europe, Asia, Africa, the Middle East and other regions. This was despite the market volatility and the current geo-political conditions.

NBE noted that the successful closure of the transaction “conveys a strong indication of the international perception toward NBE’s stable financial position and a belief in its role to support the economy as a whole.”

Participating Financial Entities

Global Coordinators of the transaction were Emirates NBD Capital Limited, Mashreq Bank, and FirstRand Bank Limited (acting through its Rand Merchant Bank Division).

Syndication Agent was Emirates NBD Capital Limited.

Documentation Agent was Mashreq Bank.

Facility Agent was First Abu Dhabi Bank (FAB).

The Initial Mandated Lead Arrangers and Bookrunners (IMLABs) were FAB, Mashreq Bank, Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Commercial Bank – Egypt (ADCB Egypt), Africa Finance Corporation, Al Ahli Bank of Kuwait (ABK) - DIFC Branch, Arab Banking Corporation (Bank ABC), Emirates NBD Capital Limited, FirstRand Bank Limited (acting through its Rand Merchant Bank Division), HSBC Bank Middle East Limited, National Bank of Kuwait (NBK) - Bahrain Branch, Standard Chartered Bank, and The Mauritius Commercial Bank Limited.

The Mandated Lead Arrangers and Bookrunners (MLABs) for the loan were Commerzbank Aktiengesellschaft, Doha Bank, Eastern and Southern African Trade and Development Bank, Sumitomo Mitsui Banking Corporation - DIFC Branch in Dubai, The National Bank of Ras Al Khaimah (RAKBANK), and The Standard Bank of South Africa Limited.

The Egyptian bank noted that the wide range of international banks joining the facility proves “NBE's extensive relations and follows its strategy of diversified funding sources.”

NBE concluded by extending its “sincere appreciation to our Coordinators for a well-arranged milestone transaction and our financing partners” for the long-standing commitment to the Egyptian financial entity.