Pricing revealed on Mumtalakat $500m loan

17 August 2008
National Bank of Bahrain (NBB) is hoping to secure a $500m syndicated loan for Bahrain’s sovereign wealth fund, Mumtalakat, at margins of 130 basis points over the London interbank offered rate (libor).

NBB, in which Mumtalakat is a major shareholder, is marketing the deal in two tranches, one conventional and one Islamic, with the size of each to be determined by appetite from banks. Both will have a tenor of five years.

Bankers close to the situation say the deal has an aggressive timeline to reach financial close by the end of August, despite NBB not being an experienced bank in loan syndications (MEED 11:08:08).

NBB is currently seeking interest in the deal from regional and international banks, although during this process the prospective margins on the deal could change depending on appetite for the debt.

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