UAE-based Gulf Petrochem Group (GP) has successfully raised $150 million from a group of international and local financial institutions based in the GCC.

In an environment of continued low global oil prices, the financing will be used to support the group's activities around the world, said a statement from the company.

The borrowing will take the form of an eight-year term loan which was provided by a syndicate of banks lead by Emirates NBD. IL&FS acted as the financial advisor, it said.

National Bank of Fujairah will be the security agent for the financing. The participating banks are Al Ahli Bank of Kuwait, United Arab Bank, Bank of China, ICICI Bank, Mashreq Bank amongst others, it added.

The loan was competitively priced with a spread over the London Interbank Offered Rate (Libor). Throughout the planning and syndication phases, GP worked closely with its stakeholders, IL&FS and the syndicate of banks.

A signing ceremony took place with high level representatives from the syndicate banks and GP's group managing director Sudhir Goyel along with senior executives from GP in attendance.

GP's group director Prerit Goel said: “Amidst current market conditions it is a testament to our operations and business plans that we were able to raise this amount of capital.”

“The banks involved have all expressed their admiration of our robust growth plans. As a group, we are determined to stay the course and to deliver on our long-term strategic ambitions,” he asid.

“Following the closure of this raise, we are currently studying to tap the capital markets with a strong focus on the Islamic finance and Sukuk market in Asia particularly, Malaysia and Indonesia,” he added.

Salah Mohammed Amin, executive vice president, corporate banking, Emirates NBD, said: “The positive response for this facility confirms the interest in key sectors in the UAE and the trust endorsed to Gulf Petrochem Group's strong financial position despite the difficult market conditions.”

“Since the beginning of the year, we have arranged a number of syndicated loan transactions. This transaction further cements our footprint in the local market,” he said.

Sreehari Iyer, chief financial officer, GP Group, said: “The positive response we received from the banking community during our meetings was extremely welcoming.”

“This competitive new source of funding will help us to achieve our global growth ambitions and showcases the financial trust in our business during these uncertain economic times,” he added. – TradeArabia News Service