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Syndicated Revolving Murabaha Financing Facility launched
2008-03-12

Manama, Bahrain: ABC Islamic Bank (the Initial Mandated Lead Arranger and Bookrunner) launched general syndication for Kuwaits Munshaat Real Estate Projects Company ("Munshaat").
ABC Islamic Bank had successfully closed the senior phase of the US$100 million, 3-year Syndicated Revolving Murabaha Financing Facility.
Prior to general syndication BNP Paribas, Emirates Bank International PJSC, and Saudi British Bank joined the facility as Mandated Lead Arrangers at the senior stage.
This is the debut syndication for Munshaat and the funds will be used to finance development of prime properties in the Holy Haram area in Makkah and Madinah in Saudi Arabia. Athman Investment Company, Kuwait is acting as the financial advisor to Munshaat Real Estate Projects Company for this financing.

Summary of the facility is as follows:

Borrower: Munshaat Real Estate Projects Company K.S.C.
Amount: US$100 million
Facility Type: Revolving Murabaha Financing Facility
Purpose: Financing of prime properties in Makkah & Madinah
Term: 3 years
Repayment:  Amortizing with six monthly repayments, commencing one year from drawdown. The average life of the facility will be 2.16 years. 

About Munshaat Real Estate Projects Company K.S.C.

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 Sharia 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 companys 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. The net income was recorded at KD27.39 million as of the financial year end.

About Athman Investment Company

Athman Investment Company is a closed Kuwaiti investment company incorporated in November 2006. It has a paid up capital of KD16.5 million and specializes in Sharia compliant asset management and investment banking activities. The company provides financial services to Aref Investment Group, and its more than 40 local and international subsidiaries and associated companies. It currently has over US$300 million in funds under management.

About ABC Islamic Bank

ABC Islamic Bank is regulated by the Central Bank of Bahrain and provides a full range of Sharia-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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