United Gulf Bank (UGB)is close to appointing Calyonand Maybankas mandated lead arrangers (MLAs) on a $65 million Islamically-structured loan facility. The funds will be used for general corporate purposes. Calyon will act as bookrunner.

Three banks have joined the transaction as lead arrangers. They are Bawag International Bank, Doha Bankand The Arab Investment Company. Tickets of $5 million paying 100 basis points were offered. The deal will be launched to general syndication and carries a greenshoe option.

The three-year facility is structured as a murabaha transaction, and is evidence of the growing popularity of Sharia-compliant loan structures. Dubai-based developer Nakheelsigned a $350 million ijara loan in August and in late September, Gulf International Bankwas mandated to arrange a $50 million syndicated murabaha facility for Shamil Bank(MEED 24:9:04; 20:8:04).