Abu Dhabi Commercial Bank has approved a medium term revolving facility of AED 800m to Gulf Capital PJSC (GC), one of the leading private equity firms in the Gulf, to help fund its growing pipeline of private equity transactions.
Gulf Capital is a leading alternative asset manager focused primarily on private equity investments and buy-outs in the GCC region. It is one of the highest capitalized investment companies in the UAE with an initial paid up capital of USD 330m. GC has a widely diversified shareholding base comprising of over 250 of the most prestigious institutional and individual shareholders in the Gulf region. With a view to enhance the return on its shareholder’s equity, GC has sought funding to leverage its current debt-free balance sheet.
Mr. Eirvin Knox, CEO, ADCB said that “the Bank bagged the transaction amidst competition from multinational banks. ADCB had enjoyed a strong relationship with Gulf Capital since its inception two years ago and this helped us to achieve a better understanding of the client’s needs and the risks associated with the transaction”.
Mr. Ala’a Eraiqat, Deputy CEO of ADCB, said, “We are pleased to be part of this bilateral deal, as there have not been many deals of this nature concluded in the UAE market before. The deal has been unique in that while serving to achieve the client’s needs and objectives in funding the private equity acquisitions with reasonable flexibility, adequate covenants have been placed to protect the lender’s interest. “
Dr. Karim El Solh, CEO of Gulf Capital said that “the speed of response of ADCB and the innovation and flexibility embedded in the current acquisition financing facility made ADCB the clear choice for Gulf Capital. The medium-term revolving structure permits us to draw down the loan facility when we find suitable investments and allows us to boost Gulf Capital’s overall return on equity.”