Sharjah-based United Arab Bank (UAB) has secured a new $125m club loan from a group of regional and international banks.

The deal has a tenor of two years, with an option to extend to three years, and has a margin of 150 basis points above the London interbank offered rate (Libor).

The deal was arranged by Germany’s Commerzbank, which also participated in the loan, along with the UK’s Standard Chartered, Commercial Bank of Qatar (CBQ), National Bank of Abu Dhabi and Emirates NBD.

UAB said the deal will be used for general corporate purposes. The bank is 40 per cent owned by CBQ.