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ABC Islamic Bank in US$100 million general syndication for Kuwait’s “Munshaat”
Mr. Khaled Al Shatti, Vice Chairman & CEO of Munshaat Real Estate Projects Company K.S.C. (Closed), left, and Mr. Abdulmagid Breish, Chairman of ABC Islamic Bank and Deputy Chief Executive and Chief Banking Officer of Arab Banking Corporation.
2008-06-18

Manama, Bahrain: ABC Islamic Bank (the Initial Mandated Lead Arranger and Bookrunner) has successfully closed syndication for a US$100 million, 3-year Syndicated Revolving Murabaha Financing Facility on behalf of Munshaat Real Estate Projects Company K.S.C. (Closed)
The signing ceremony held at Arab Banking Corporation’s headquarters in Bahrain was attended by senior representatives of Munshaat, ABC Islamic Bank and participating banks. At the signing ceremony, Mr. Bader Bu Rashed, Chairman of Munshaat elaborated on the unique market niche and the performance of the company. Mr. Abdulmagid Breish, Chairman ABC Islamic Bank and Deputy Chief Executive and Chief Banking Officer of ABC said, “AREF is a much-valued client of ABC Group and arranging this facility for Munshaat builds further on that excellent relationship.” He also extended his thanks to all the participating banks for their support.
This is the debut syndication for Munshaat and the funds will be used to finance development of prime properties in the Haram area in Makkah and Madinah.

In the senior syndication BNP Paribas, Emirates Bank International PJSC and The Saudi British Bank joined the facility as Mandated Lead Arrangers.

At the general syndication stage, Abu Dhabi Islamic Bank PJSC and Libyan Foreign Bank joined as Senior Lead Arrangers and Arab Islamic Bank and Banque BIA as Co-Lead Arrangers.

Summary of the facility is as follows:

Beneficiary:  Munshaat Real Estate Projects Company K.S.C. (Closed)
Amount:  US$100 million
Facility Type:  Revolving Murabaha Financing Facility
Purpose: Financing of prime properties in Makkah & Madinah
Term: 3 years
Repayment:  Amortizing with semi annual repayments, commencing one year from drawdown.

About Munshaat Real Estate Projects Company K.S.C. (Closed)

Munshaat Real Estate Projects Company K.S.C. is a Kuwait-based real estate company established in April 2003 and founded by its original shareholders AREF Investment Group and the International Leasing & Investment Company. The company was listed on the Kuwait Stock Exchange in November 2007.

The company performs its activities in accordance with Islamic Shari’a principles. Its main activity is real estate services both locally and outside Kuwait, that include establishing and managing real estate funds, managing financial and real estate portfolios for its account and on behalf of other entities and providing consultancy services. The company’s major business is servicing residential projects in Makkah and Madinah where it has established a track record of securing usufruct rights of properties and distributing lease rights to retail investors. Its major projects include the Zamzam Tower project in Makkah, Al Safwa project in Makkah and the Dar Al-Qiblah Tower in Madinah. The unique location of its projects and the growing demand for Sukuk Al Intifaa from all over the Muslim world underpin its strong financial performance.
    
For the financial year 2007, Munshaat reported a significant increase in assets which rose by 45.6% to KD257.26 million. The share capital of the company increased by KD8 million to KD28 million during the year. Munshaat’s net income was recorded at KD27.39 million as of the financial year end.

About AREF Investment Group

AREF Investment Group is a Kuwaiti shareholding company with a paid up capital of KD106 million and assets worth over US$2 billion. It is involved in direct investment in various business sectors including energy, logistics, real estate, banking, IT and health services.

About ABC Islamic Bank

ABC Islamic Bank is regulated by the Central Bank of Bahrain and provides a full range of Shari’a-compliant financial services including investment, capital markets and commercial banking. It is wholly owned by Arab Banking Corporation which is itself majority owned by state shareholders of Kuwait, Libya and Abu Dhabi.

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