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ABC Closes US$53 Million Floating Rate Notes for Bahrain Commercial Facilities

Manama, Bahrain: Bahrain Commercial Facilities Company BSC (BCFC) has successfully closed a US$53 million floating rate, unsecured note issuance due in 2019. Arab Banking Corporation (ABC) was the sole Lead Manager. Trowers & Hamlins acted as lead counsel to the issue.

The notes are issued through a private placement and have a maturity of 5 years, with interest paid semi-annually in arrears. The Notes are fully underwritten by Arab Banking Corporation.

The issue of Notes is in line with BCFC’s policy to diversify its sources of funding base, to enhance its financing operations and to spread the maturities of its liabilities. The funds raised from the issue of the Notes will be applied to fund the growth in BCFC loan portfolio and for general corporate purposes. The transaction attracted investors from the UAE, in addition to local participants from Bahrain.
On this occasion, the Chief Executive Officer of BCFC Dr. Adel Hubail said “the issuance of the notes  reflect the importance of the bond market as a key financing tool that companies should consider to utilize the liquidity available in the market. We are pleased by the encouraging response from the investors. We thank Arab Banking Corporation and all the investors for their continuing confidence in the BCFC’s business model.

Dr. Adel extended his gratitude to the Central Bank of Bahrain for their cooperation and guidance.

The notes issue is the ninth series of BCFC bonds and reflect the confidence of the investors in the continued good performance of the company and its strategies.
“We have a long-standing relationship with BCFC and are proud to have been appointed to lead manage the bond issue on their behalf. The successful closing with investors joining from the region and locally demonstrates ABC’s ability to structure and place debt capital market issues,” said John McWall, Head of Syndications at ABC.
Ray Ferguson, Chief Banking Officer at ABC, commented: “We are delighted to have led this transaction for our client and are committed to further strengthening ABC’s debt capital markets position in the GCC.”

Salman Ahmed, the partner who led the team from Trowers & Hamlins, commented: "We are delighted to have been able to work with ABC's knowledgeable and experienced capital markets team on this transaction. The issue was delivered on schedule and in compliance with requirements of the Central Bank of Bahrain. The deal, coming on the back of BCFC's successful 2013 bond issuance, represents another positive sign for the development of capital markets in Bahrain."
Being ABC’s first Debt Capital Markets deal as a Lead Manager, this transaction represents an important milestone. The successful close of the issuance coincides with plans to expand the debt capital markets products available to ABC’s clients.
In addition to its role as the Lead Manager, ABC will act as the Principal Paying Agent, Transfer Agent and Registrar for the Notes.

Bahrain Commercial Facilities Company BSC is a public shareholding company incorporated and registered in Kingdom of Bahrain. It provides short-term, medium-term and long-term loans. Effective 26th June 2005, the Company became licensed and regulated by the Central Bank of Bahrain.

ABC is a leading international universal bank headquartered in Manama, Kingdom of Bahrain, and is listed on the Bahrain Bourse. It has a large network of subsidiaries, branches and representative offices across countries in the Middle East, Europe, the Americas and Asia. ABC provides clients with a portfolio of innovative financial products and services that include corporate banking, trade finance, project and structured finance, syndications, treasury products and Islamic banking. It also provides retail banking services through its network of retail banks in the MENA region.


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