Abu Dhabi Commercial Bank (ADCB), a government-controlled lender in the emirate, has closed a $600m loan facility, which was syndicated to Asian banks.

The debt with a life span of three years, offers an interest rate of 95 basis points over the London Interbank Offered Rate (Libor), according to news agency Reuters, which cited a statement from Wells Fargo, the bank that coordinated the debt transaction.

The deal initially closed at $220m after a limited syndication which saw the participation of seven banks. It was then launched to general syndication on 6 October to raise $500m from wider Asian investors and after over subscription, ADCB raised the final amount to $600m.

Established in 1985, ADCB, which is rated A by S&P and A+ by Fitch, was at the centre of speculation last week along with Union National Bank (UNB), Abu Dhabi Islamic Bank (ADIB) and Al-Hilal Bank. news reports suggested that the government of Abu Dhabi was planning to merge ADCB with UNB and combine the other two Islamic lenders separately to consolidate financial sector in the emirate . However, ADCB, ADIB and UNB have denied they considering potential mergers.