Gulf Capital, one of the most active and diversified alternative asset managers in the Gulf region, announced today that it has successfully closed an AED 850 million syndicated revolving credit facility lead arranged by two of the leading banks in the UAE, Abu Dhabi Commercial Bank as Initial Mandated Lead Arranger and First Gulf Bank PJSC as Mandated Lead Arranger. The new six-year facility will help fund Gulf Capital’s growing pipeline of investments across its various business units, including Private Equity, Credit and Mezzanine and Real Estate. The announcement comes shortly after the successful closing of the Company’s third and largest private equity fund to date- GC Equity Partners III-which, at US$ 750 million, is the largest private equity fund raised in the Middle East over the last three years.
Dr Karim El Solh, Chief Executive Officer of Gulf Capital, said: “We are very pleased to be signing this landmark facility with Abu Dhabi Commercial Bank and First Gulf Bank PJSC and growing our partnership with them. Gulf Capital is entering 2015 extremely well-funded both at the corporate and fund levels and is evaluating numerous investment and growth opportunities across the region. We believe there is a unique window today to secure attractive investments at reasonable valuations in high growth sectors across the GCC.”
He added: “Gulf Capital is continuously assessing its funding options in the regional capital markets, be it on the debt or equity side. In the current low interest rate environment and increasing bank liquidity, the Firm took a view that it would be more advantageous to fund its growth through a debt facility rather than through the equity capital markets. This record size revolver credit facility allows Gulf Capital to reduce its borrowing costs, optimise its capital structure and continue financing its investments across all of its asset classes. We are privileged to be in a strong financial position today and to be one of the best funded regional investment companies, both at the corporate and fund levels.”
Mr Colin Fraser, Executive Vice President and Head of Wholesale Banking at ADCB, said: “We are delighted to continue to support the growth of Gulf Capital by arranging this financing for them. The new facility reinforces the strong relationship and partnership that ADCB has enjoyed with the company since its inception in 2006. The revolver facility is well structured to suit the liquidity requirements of the company and clearly enhances our partnership and our commitment to assisting the Company in its ongoing development.”
Mr Simon Penney, Head of Wholesale and International Banking at FGB, said: “This new facility further strengthens our successful business relationship with Gulf Capital, as well as its portfolio companies, and we’re committed to supporting the company in its future growth plans.”
Mr. Steve Perry, Head of Debt Markets and Syndications at FGB, said: “We are very pleased to act as Mandated Lead Arranger for this important facility for Gulf Capital and we look forward to continuing to provide flexible and innovative financing solutions to the Company going forward.”
Mr Christopher Foll, Chief Financial Officer of Gulf Capital said: “We thank both banks for their continued support with this new and substantial facility. Gulf Capital remains one of the best capitalised investment firms in the region, and this increased line of credit will further enhance the Company’s ability to meet its investment commitments in the medium term and grow its franchise across the region.”