Investcorp to close $500m by early July

24 June 2012

Investment firm seeking loan to refinance debt due in 2013

Bahrain’s Investcorp is set to sign a $500m loan by early July as it tries to raise money to refinance a series of debts due in early 2013.

Bankers close to the deal say the new loan will be completed in July, slightly later than originally planned, as several banks have yet to respond with commitments. “I think they wanted to close in late June, but there are a few banks still to give commitments so it will probably be early next month now,” says one banker involved in the loan.

Although the new deal is being arranged now, it will not actually start until March 2013 to coincide with a $500m loan due to be repaid that month. The firm also has a $243m loan due the following month. Pricing on the new deal is 4.5 per cent and banks have been invited to commit in dollars, euros or local currencies to attract demand from regional banks.

The new deal is being arranged by the UK’s Barclays and Royal Bank of Scotland, the US’ Citigroup and Germany’s Deutsche Bank.

Borrowers typically raise money well ahead of when they require it if they expect financial markets, or the terms on which they can borrow on, to deteriorate in the future.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.