Daewoo Engineering & Construction Co., Ltd. (“Daewoo E&C”), one of Korea’s leading construction companies with a growing presence in Middle East and Africa, has successfully completed a US$ 200 Million Dual Tranche (Conventional and Islamic) Syndicated Term Facility on 30th January, 2019.
Emirates NBD Capital Limited (“EMCAP”), Emirates NBD’s investment banking arm, acted as sole Mandated Lead Arranger and Bookrunner (“MLAB”) for the transaction that included eight other regional and international banks.* The transaction marks EMCAP’s debut syndication for a Korean corporate, which attracted a wide base of investors across the GCC, Europe and Asia.
The transaction was initially launched at US$ 100 million, which got oversubscribed by two times and was eventually upsized to US$ 200 million; a testament to Daewoo’s growing global reputation stemming from its strong commercial competitiveness and extensive technical expertise.
Mr. Inhwan Cho, Executive Vice President, Daewoo E&C said, “This facility is part of our company’s conscious strategy to proactively tap new liquidity, especially in the GCC financial markets which will potentially auger well for future financing requirements in relation to our Middle East projects”
While Daewoo E&C has tapped global syndicated loan markets in the past, this transaction is of strategic importance to the Company, since it has allowed them to forge key relationships with Islamic banks based in the Middle East that are active in the contracting space.
The facility is structured as a two-year bullet funding comprising both Conventional and Murabaha tranches and will be utilised towards funding working capital requirements for the Company’s overseas projects.
Fahad Abdulqader Al Qassim, Chief Executive Officer, Emirates NBD Capital commented, “The overwhelming success of this deal reaffirms our market position in the region as the “go-to” bank for international clients looking to tap Middle Eastern liquidity, in addition to global appetite, and we look forward to continue supporting our international clients in their future financing needs backed by our market leading investment banking platform”
*Participating Banks
Mandated Lead Arrangers:
Ahli United Bank B.S.C. (DIFC Branch)
Ahli United Bank K.S.C.P.
Warba Bank K.S.C.P.
Lead Arrangers:
Kuwait International Bank K.S.C.P.
Bank SinoPac Offshore Banking Branch
Arrangers:
Credit Europe Bank N.V.
Mashreqbank psc
First Commercial Bank Offshore Banking Branch
