Abu Dhabi-headquartered asset manager Gulf Capital closed an AED850m ($231.4m) syndicated revolving credit facility, opting to taking advantage of strong bank liquidity rather than tapping the equity capital markets.

The six-year revolving credit facility was arranged by initial mandated lead arranger Abu Dhabi Commercial Bank and mandated lead arranger First Gulf Bank. 

It was raised to fund the company’s investments in private equity, credit and real estate.

In an official statement, Karim el-Solh, CEO of Gulf Capital said that the company chose to raise bank debt due to the current low interest rate environment and high levels of bank liquidity.

“The firm took a view that it would more advantageous to fund its growth through a debt facility rather than through the equity capital markets,” he said, adding that the revolver credit facility has allowed the company to reduce its borrowing costs.

Toward the end of 2014, Gulf Capital was reportedly considering launching an initial public offering (IPO) and listing on the Abu Dhabi Exchange.

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