The Banking Executive Magazine - January 2025

Ittihad ITTIHAD CLOSES $450MLN SENIOR UNSECURED SUSTAINABILITY LINKED FACILITY, BOOSTING LIQUIDITY SOURCES BY AN ADDITIONAL $345MLN Ittihad announced the successful arrangement of a $450 million senior unsecured committed revolving credit facility (RCF), further strength- ening its liquidity position. The facil- ity was arranged by Emirates NBD, Commercial Bank of Dubai, and First Abu Dhabi Bank as Mandated Lead Arrangers and Bookrunners (MLABs) and sustainability joint coordinators, with Abu Dhabi Commercial Bank and Abu Dhabi Islamic Bank, and Emirates Islamic Bank acting as joint arrangers. Structured at the Holdco level on a pari passu basis with the outstanding Sukuk certificates while reflecting similar terms and conditions, the fa- cility has a five-year tenure (3+1+1), three years committed with a two- time extension option each for an ad- ditional year at the banks’ discretion. It also includes an accordion feature, allowing for an increase in the facil- ity size. The new RCF is divided into two tranches: • Tranche A: $225 million designated for gen- eral corporate purposes, replacing the company existing standby RCF of $105 million which remained undrawn at the time of closing. • Tranche B: $225 million to replace the com- pany’s existing 90-day subsidiary- level working capital facilities, which were previously financed on an uncommitted basis. Of this, $145 million will be drawn to set- tle and replace outstanding work- ing capital facilities, while the remaining $80 million will provide additional liquidity source on standby for working capital pur- poses. As a result, the transaction will be leverage neutral. This strategic facility marks a signifi- cant milestone for Ittihad, reinforcing its capital base and supporting future growth through an optimized capital structure. It enhances liquidity, low- ers finance costs, and aligns with the company’s commitment to sustain- ability by integrating environmental and social performance goals into its financing strategy. Zahi Abu Hamze, Chief Financial Officer of Ittihad, commented: “We are pleased with the flexibility this transaction provides to support our future financial needs while con- tributing to our efforts toward an im- proved credit rating—all at an efficient cost. This is yet another tes- tament to Ittihad’s strong financial outlook. We appreciate the confi- dence shown by all participating banks in this transaction.” the BANKING EXECUTIVE 14 ISSUE 193 JANUARY 2025