ADCB arranges $217m for private equity firm

26 May 2008
Abu Dhabi Commercial Bank (ADCB) has agreed a AED800m ($217m) revolving credit facility with local private equity firm Gulf Capital to fund the business' upcoming transactions.

The deal marks the first time that Gulf Capital has sought debt to leverage its balance sheet in a bid to improve its return on equity ratio, since its inception two years ago with $330m of paid up capital.

The structure of the funding allows Gulf Capital to drawdown from the facility only as it finds acquisition opportunities.

Alaa Eraiqat, deputy chief executive of ADCB, says: “There have not been many deals of this nature concluded in the UAE market before.”

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