Burgan Bank Announced Closing of USD 800 Million Unsecured Term Loan Facility

Achieving three times oversubscription following strong demand
Successfully attracting strong global and regional partners

Kuwait, 14 June 2023:  Burgan Bank announced that it has successfully closed the syndication for its global USD 800 million unsecured term loan facility. Mizuho Bank, the global bank with its headquarters in Japan, acted as sole Global Coordinator, Active Bookrunner, BMLA and Facility Agent for this transaction. Meanwhile, the Industrial and Commercial Bank of China (ICBC) and Mashreq Bank also served as Active Bookrunners on the deal. 

The syndication, originally launched at USD 300 million in February 2023, was oversubscribed threefold, with commitments totaling USD 920 million. The facility was well received in the market, attracting strong global and regional partners. GCC lenders comprised 39% of the syndicate, while Asian and European lenders accounted for 40% and 21%, respectively.  

Reacting to the conclusion of this transaction, Mr. Mohammad Najeeb Al-Zanki, Acting General Manager of Corporate Banking at Burgan Bank, said: “As a team, we are proud to have completed such a successful syndication of this scale. From the start, we were confident about the strong demand for this landmark syndication, and the threefold oversubscription was a great testament to investor confidence in the overall credit profile of Burgan Bank and the immense trust global markets have in the Kuwaiti banking system.” 

Meanwhile, Mr. Abdullah Abdelmajeed Marafie, Chief Treasury Officer at Burgan Bank, commented: “The closing of this syndication is of strategic importance as it contributes to the sustainable growth of Burgan, the strengthening of the Bank’s balance sheet, and the enhancement of its long-term financial liquidity in line with the Basel III requirements. It also serves as a proactive step toward continuing to implement Burgan’s funding strategy by augmenting diversified funding sources, all while safeguarding against unexpected fluctuations.” 

On his part, Mr. Yuki Mizunoe, Regional Head for Middle East, Africa, Turkey & Central Asia Caucuses at Mizuho, said: “As a strategic partner of Burgan Bank, we were pleased to witness global demand, especially from Asia, for this syndication which was increased from its initial launch due to strong investor appetite. We are honored to have supported Burgan on this deal and hope to continue building on our strategic relationships with the Bank and the Kuwaiti government.” 
The Mandated Lead Arrangers included Agricultural Bank of China, Bank of Baroda, Commercial Bank of Dubai, Commerzbank, Standard Chartered and State Bank of India. The Lead Arrangers were Riyad Bank and Saudi National Bank, while the National Bank of Ras Al Khaimah, Banco Cooperativo Español and the National Bank of Umm Al Qaiwain were at the Arranger level. Dentons and Al Ruwayeh and Partners acted as legal counsel for lenders.