Ittihad Secures $450 Million Sustainability-Linked Credit Facility
Deal News | Feb 10, 2025 | Zawya
Ittihad International Investments, a private investment conglomerate based in Abu Dhabi, has secured a $450 million sustainability-linked revolving credit facility (RCF) from local banks. This facility is significant as it supports Ittihad's financial strategies aimed at enhancing its credit rating and providing liquidity for multiple purposes. The credit facility is organized into two tranches: the first tranche of $225 million is for general corporate purposes and replacing an existing standby undrawn RCF, while the second tranche is for replacing current subsidiary-level working capital facilities and adding additional standby liquidity. The financing involves key UAE banks, including Emirates NBD, Commercial Bank of Dubai, and First Abu Dhabi Bank, which act as mandated lead arrangers and sustainability coordinators. The arrangement is crucial for Ittihad’s expansive portfolio, which covers sectors ranging from industrial manufacturing to healthcare, totaling around $1.4 billion in investments.
Sectors
- Finance
- Sustainability
- Investment Management
Geography
- United Arab Emirates – The entire deal, including the banks and Ittihad itself, is based in the UAE.
- Abu Dhabi – Ittihad International Investments is based in Abu Dhabi, where the financing activities are centered.
Industry
- Finance – Involves revolving credit facilities and the role of banks in structuring financial deals.
- Sustainability – The facility is sustainability-linked, reflecting an emphasis on environmentally conscious financial activities.
- Investment Management – Ittihad is an investment conglomerate with a diverse portfolio, making this relevant to investment management strategies.
Financials
- 450,000,000 – Total value of the sustainability-linked revolving credit facility.
- 225,000,000 – First tranche of the RCF for corporate purposes and replacing an existing facility.
- 145,000,000 – Part of the second tranche to replace existing working capital facilities.
- 80,000,000 – Remaining part of the second tranche for additional liquidity.
- 1,400,000,000 – Total current investments managed by Ittihad.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Ittihad International Investments | Target Company | Company | A private investment conglomerate with a diverse portfolio across various sectors. |
| Emirates NBD | Mandated Lead Arranger and Bookrunner | Company | One of the leading banks in the UAE, involved in structuring the credit facility. |
| Commercial Bank of Dubai | Mandated Lead Arranger and Bookrunner | Company | A key bank in the UAE involved in arranging the credit facility. |
| First Abu Dhabi Bank | Mandated Lead Arranger and Bookrunner | Company | A major bank in the UAE acting as lead arranger in the deal. |
| Abu Dhabi Commercial Bank | Joint Arranger | Company | Participates in structuring the credit facility. |
| Abu Dhabi Islamic Bank | Joint Arranger | Company | Involved in facilitating the credit agreement. |
| Zahi Abu Hamze | CFO | Person | CFO of Ittihad International Investments, commenting on financial strategy. |