BAHRAIN: The investment arm of the kingdom of Bahrain, Mumtalakat Holding Company, has successfully secured a US$250 million revolving credit facility on the 1st September. The transaction involved National Bank of Bahrain and Gulf International Bank as the mandated lead arrangers, facility agent and structuring bank, whilst Bank of Bahrain and Kuwait, Arab Bank and Mashreq Bank acted as the co-arrangers for the deal. The legal firms involved in the transaction were UK-based Charles Russell and Elham Ali Hassan & Associates in Bahrain.
Part of the proceeds from the facility were utilized for the repayment of a US$500 million existing syndicated facility which was procured in 2008 and matured at the end of August this year. According to representatives from the investment firm, Mumtalakat has consistently refinanced the facility over the past two years, and has repaid up to US$250 million in outstanding debt. Commenting on the deal Mahmood Al Kooheji, the CEO of the sovereign wealth fund, said: “The new revolving credit facility is part of Mumtalakat 's overall financing and funding strategy, which utilizes a balanced mix of local, regional and international banks, as well as key pools of liquidity in global capital markets.”
Earlier this year, the company allocated up to US$150 million for investments in local projects including a total of US$87 million for the real estate and tourism sectors to boost the Bahraini economy. According to data by the Sovereign Wealth Fund Institute, as of August 2013, Mumtalakat holds approximately US$7.2 million in assets attained from non-commodity related resources. In July 2012, the investment firm issued a RM3 billion (US$912.47 million) ringgit-denominated Sukuk Murabahah program which was assigned a long-term rating of ‘AA2’ with a stable outlook by Malaysia-based RAM Ratings.