(Sukuk.net - Arab News) Bahrain Mumtalakat Holdings Company (Mumtalakat), with over $10 billion assets under management, is keen to explore investment opportunities internationally as part of a medium-to-long term strategy to enhance the company's investment portfolio, a top official of the company revealed.

Mahmood Al-Kooheji, deputy CEO of Mumtalakat, who sealed the deal for the $500 million syndicated facility with lead arranger and other participating institutions at Gulf Hotel, said the overwhelming response from the banks, especially from Islamic ones, had been very encouraging. The facility is a five-year dual-currency-term loan with a conventional and an Islamic tranche, with $115 million Islamic and $385 million conventional loan, is the first for Mumtalakat since its inception.

Mumtalakat, he said, is on the right path of development and the company may raise similar debt to fund the future investment project.

Al-Kooheji added: "Our overall goal is to move Mumtalakat to a position where it is the global investor on behalf of Bahrain. To achieve this we have a very clear investment objective. In creating our portfolio we intend to make a number of strategic acquisitions in the future to provide greater geographic and sectoral balance to our current holdings. By undertaking our first debt facility, Mumtalakat will be well placed to capture value creating acquisition opportunities when they arise.

The successful syndication of a $500 million facility during turbulent market conditions and a tightening loan market is testimony to the credit worthiness of Mumtalakat and the partnership formed between us, NBB and the participating banks. The syndication represents the debut debt offering by Mumtalakat Holdings Company, which is wholly owned by the Bahrain government."

Under the terms of the agreement, NBB as mandated lead manager, underwrote and syndicated the transaction to a number of leading financial institutions. Arab Banking Corporation and Bank of Tokyo Mitsubishi are the lead arrangers for the syndication while Bahraini Saudi Bank, Arab Bank, BBK and National Bank of Kuwait joined as arrangers. Albaraka Islamic Bank is acting as the facility agent and senior lead arranger of the Islamic tranche of the facility.

Kuwait Finance House and Al Salam Bank as well as subsidiaries of the Albaraka Group joined the Islamic tranche as arrangers. The Arab Banking Corporation is participating in the Islamic tranche also through ABC Islamic Bank. Trowers and Hamlins acted as legal advisers to the syndicate for this landmark deal.

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