Trowers & Hamlins

The US$500 million syndicated financing has a five-year tenor and comprises both a conventional tranche and an Islamic tranche. The Islamic tranche is a US$115 million master commodity murabaha facility. The conventional facility is a dual currency US$385 million term loan facility, which may be drawn in US Dollars or Bahraini Dinars.

NBB is the Mandated Lead Arranger of the deal and it syndicated the transaction to other financial institutions with a presence in the region. Al Baraka is the Investment Agent and Senior Lead Arranger of the Islamic tranche.

Mumtalakat is wholly owned by the Bahrain Government. It owns stakes in some 38 commercial enterprises and its portfolio is worth approximately US$10 billion. NBB is Bahrain’s national lender and is the leading provider of commercial and retail banking services in the Kingdom.

Comments Mahmood Al Kooheji, Deputy CEO of Mumtalakat: “Our goal is to move Mumtalakat to a position where it is a global investor on behalf of Bahrain. By undertaking our first debt facility, we will be well placed to capture value creating acquisition opportunities when they arise.”

Says Neale Downes, Partner at Trowers & Hamlins: “We are delighted to have advised NBB and the banks, in this landmark deal. The fact that the financing is both dual currency and dual tranche and that we were working to a very tight deadline made it an interesting and challenging transaction.  This is our third significant transaction this year, working with NBB and we look forward to continuing our relationship with them”

“This transaction is also important in that it shows that although the debt market in the West remains very challenging, deals are still being completed in the Gulf and local and regional bank appetite for quality transactions remains strong.”

The Trowers & Hamlins team was led by Partner Neale Downes with support from Jeremy Ingham, Salman Ahmed and Dana Raees.

Mumtalakat was advised by its in-house counsel.