ADCB takes mega loan

21 October 2005
Abu Dhabi Commercial Bank (ADCB)has signed a $1,000 million syndicated loan facility with a group of 37 banks. The loan was increased in size from $750 million due to oversubscription (MEED 9:9:05).
Abu Dhabi Commercial Bank (ADCB)has signed a $1,000 million syndicated loan facility with a group of 37 banks. The loan was increased in size from $750 million due to oversubscription (MEED 9:9:05).

The mandated lead arrangers (MLAs) on the deal were Bank of America, Calyon, Deutsche Bankand JP Morgan, which acted as joint bookrunners, and San Paolo IMI, which was the documentation agent. All five took equal $40 million tickets. The other tickets ranged in size from $5 million-35 million.

Pricing was tight, at 27.5 basis points (bp) over Libor. 'This is unsurprising given ADCB's ownership structure,' says a banker involved in the deal. Abu Dhabi Investment Authority owns a substantial proportion of shares.

It is the second major recent borrowing by ADCB. The first $800 million drawdown of a euro medium-term note (EMTN) programme was signed in June, priced at 35 bp (MEED 24:6:05).

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