22 October 2005 - United Gulf Bank Raises US$ 175 Million in Three-Year Murabaha Facility

United Gulf Bank (UGB) of Bahrain has successfully raised US$175 million through a three-year Murabaha facility. The mandated lead arrangers are Abu Dhabi Islamic Bank, Bank für Arbeit und Wirtschaft-Postsparkasse Aktiengesellschaft, Standard Bank plc and WestLB AG, London Branch.

The three-year Mudaraba Restricted with Revolving Commodity Murabaha Facility was initially launched at US$100 million on a fully underwritten basis by the mandated lead arrangers, but was subsequently increased to US$ 175 million to satisfy demand from a diverse international banking participating group.

The Murabaha carries a profit margin of 1 per cent per annum over six month LIBOR, and proceeds will be used to re-profile UGB’s liability structure.

Senior arrangers are Finansbank (Holland) N.V. and Burgan Bank; arrangers are HVB, Mashreq Bank, RZB and SMBC; lead managers are Bank Sepa International, Bumiputra Commerce, Dubai Bank, Export-Import Bank of China, Persia International Bank, and UBAE.

At the signing ceremony in Vienna, UGB's chief executive officer, William Khouri said: "The diversity and standing of banks supporting the issue are testimony to the confidence placed by the global financial community in UGB’s strength and capacity. This is our largest medium term financing to date, and follows a successful US$65 million issue some 10 months ago.”

UGB is the investment banking arm of Kuwait Projects Company (KIPCO) Group. With a successful record spanning more than 24 years, UGB manages a diversified portfolio of investments in wealth and asset management, commercial banking, real estate, telecommunications, private equity and quoted securities. Core investments in subsidiaries and associates include: Algeria Gulf Bank, Algeria; Gulf Egypt for Hotels and Tourism Company, Egypt; Jordan Kuwait Bank, Jordan; KIPCO Asset Management Company (KAMCO), Kuwait; Tunis International Bank, Tunisia; UGB Securities Co., Bahrain; United Cable Company, Kuwait; United Industries Company, Kuwait; and United Real Estate Company, Kuwait.

UGB and its subsidiary KAMCO have a proven track record of successful investment banking transactions including corporate finance advisory, new issue placement and underwriting, mergers and acquisitions, bond issuance as well as investment product structuring and placement. Assets under management exceed US$ 5.2 billion.

KIPCO is Kuwait’s largest private sector company, with more than US$ 15 billion under management or control and a portfolio of some 55 companies with major activities in financial services and media and telecommunications, as well as real estate, industry and management & advisory, throughout the Middle East and North Africa, and substantial ownership interests in the U.S. and Europe. KIPCO employs more than 12,000 people internationally and its shares are among the most actively traded on the Kuwait Stock Exchange. UGB forms part of KIPCO’s Financial Services Group, which operates banks and investment companies in Algeria, Tunisia, Jordan, Palestine, Cyprus, Bahrain, Kuwait and the U.S., with operations planned in Qatar, Libya, Iraq and Syria.

For further information please contact United Gulf Bank on telephone +973 17533233 or email info@ugbbah.com.