TDB raises $332 million equivalent in its first Middle Eastern-focused Dual Tranche syndication
The Eastern and Southern African Trade and Development Bank (TDB), one of the fastest growing investment grade rated multilateral development financial institutions in Africa, has successfully completed $332 million equivalent Dual Tranche (conventional and Islamic) Dual Currency Syndicated Term Facilities on 20 December 2017.
This is the first Islamic debt borrowing for TDB.
The launch amount of the transaction was $200 million but the commitments received amounted to the equivalent of $332 million, a 150 per cent over-subscription level, demonstrating the strong international appetite for TDB's name.
“We are really delighted by the outcome of this debut financing in the Middle East region” said Admassu Tadesse, TDB President & CEO, following the facility signing, pointing out that the overwhelming response in the facility from Middle Eastern and international banks attests to the strong financial credibility of TDB, recently reconfirmed by the Bank’s investment grade status from Moody’s. He added that it also reflects unrelenting confidence in the continued growth trajectory and promise of the economies of eastern and southern Africa region.
The transaction was arranged by Emirates NBD Capital Limited (ENBD), First Abu Dhabi Bank PJSC (FAB), Mashreqbank PSC (Mashreq), and The Bank of Tokyo-Mitsubishi UFJ, Ltd (MUFJ) as the Mandated Lead Arrangers and Bookrunners. ENBD was the Structuring Bank and Documentation Agent, FAB was the Global Agent, Conventional Facility Agent and the Investment (Islamic) Agent, and Mashreq was the Marketing and Roadshow Agent.
Tadesse expressed that the participation in this transaction exceeded the Bank’s expectations, with deep gratitude to all the financing partners, including the bookrunners who were applauded for doing an outstanding job. In closing, he added that “We certainly look forward to developing further financial cooperation and partnerships in the Middle Eastern Region”.
The transaction was TDB’s debut Middle East-focused syndication and the facility attracted a wide base of investors across the GCC. This was a testament to TDB’s growing global reputation stemming from its increasing success in promoting trade, economic development and regional integration across eastern and southern Africa.
While TDB has regularly tapped the global syndicated loan markets in the past, this transaction was a pioneering milestone as the first Middle Eastern focused transaction that also includes a debut Islamic facility.
The facilities are structured as a two-year bullet term denominated in US dollar and euro. The proceeds of the Islamic and Conventional tranches will be used towards Sharia complaint investments/ financings and general corporate purposes respectively.