Qatar Islamic Bank participates in $155 million financing deal…

QIB, along with Noor Bank and Warba Bank, the mandated lead arrangers, have successfully closed a $155mn Shariah-compliant receivable backed syndicated financing facility for a UAE-based Jafza (Jebel Ali Free Zone Authority) entity.

The facility is a pioneering landmark transaction that enabled the obligor to successfully securitise its future receivables guaranteed by multinational oil and gas companies (MNOCs).

Noor Bank acted as lead arranger and bookrunner for the facility, besides its role as the account bank, documentation bank, Shariah co-ordinator, as well as investment and security agent. The facility was designed to refinance existing debt and finance the company’s future capital expenditure.

QIB Group CEO Bassel Gamal said, “The signing of this agreement confirms the bank’s strategy and commitment to providing innovative Islamic financial solutions that meet the requirements of regional corporate clients. This partnership between Noor Bank, QIB and Warba Bank is a testament of the strong co-operation between regional Islamic financial institutions to support strategic projects. This is another confirmation of our pioneering role in supporting the overall Islamic economy growth.”

Hussain al-Qemzi, GCEO, Noor Investment Group, and CEO Noor Bank, said, “Islamic financing is asset-backed, which delivers greater security to the obligor and financiers. We are pleased to have led the facility that allows us to support our obligor in achieving its financial goals. On the other hand, working with our partners, QIB and Warba Bank, has once again enabled us to benefit from the vast potential that the regional market holds. The synergy has also contributed to the development of a sustainable economic model and the growth of the Islamic economy within the Middle East.”

Incorporated in 2006, the obligor is a world-class oil services company that has significant operations in surface oil-based services in the Middle East. The obligor serves the entire Middle East North Africa (Mena) region and enjoys a dominant market position with a stable customer base.

The company offers a complete range of oil services and has appropriate infrastructure to cater to MNOCs. The obligor has concluded a number of acquisitions to foray in other regional and international markets and is actively seeking to penetrate the Saudi Arabian market. Source: Gulf Times