Emirates NBD to offer more loans for local firms
Emirates NBD, the largest banking group in the Middle East in terms of assets which sealed a deal for US$50 million syndicated loan recently with People’s Leasing and Finance Plc (PLC). has met with some major local corporates in a similar attempt to lend money, officials said.
“They met with about 10 companies, two months ago including Commercial Bank, Seylan, Melsta Regal (Aitken Spence), etc.,” an official told the Business Times. He added they are looking to lend medium to long term loans. PLC secured a two and a half year medium term loan. A PLC official said that this is the first time a finance company has raised a syndicated loan, which is a loan that is granted by a group of lenders and is structured, arranged, and managed by one or a number of commercial banks or investment banks known as arrangers. The arrangers provide the investment-banking part of raising investor funding for an issuer in want of capital.
“This is a medium term loan at a very attractive rate. We will be utilizing this money for working capital purposes,” he added. PLC raised $10 million from the Middle East under the External Commercial Borrowing Scheme introduced via the government’s 2013 Budget some months ago.
Analysts say that the likes of Emirates NBD will be more frequent this year as they have exhausted their traditional markets such as Europe.