A $500 million syndicated term loan facility for the Dubai-based Mashreq PSC has been closed, according to bankers.

The facility is for the general funding purposes of Mashreq including refinancing a $250 million five-year term loan facility dated December 14, 2005. The five-year term loan pays a margin of 0.25 per cent per annum over LIBOR.

The syndication, for which BNP Paribas and Mizuho Corporate Bank were the manadated lead arrangers and bookrunners, was originally launched for $400 million on June 8, 2007, but closed significantly oversubscribed.  The borrower elected to increase the facility amount to $500 million. The deal was signed July 24.

Mashreq was established in 1967. It is today one of the major financial institutions in the UAE, ranking fifth overall in terms of assets and it is by far the largest privately owned bank in Dubai.

Mashreq is a full service commercial bank with a strong domestic franchise in retail and corporate banking. Although the bank’s focus is currently very much in the UAE market, it has an extensive international presence, with branches/subsidiaries across seven countries: Bahrain, Egypt, Hong Kong, India, Qatar, the UK and the US.  -TradeArabia News Service