UAB successfully concludes Dh1 billion, 2-year loan facility

25/12/2025 03:25 AST

United Arab Bank on Wednesday announced the successful conclusion of its Dh1.0 billion, 2-year senior unsecured dual tranche term Loan facility.

The dual tranche borrowing comprises a Conventional tranche and a Commodity Murabaha tranche, concluded at competitive market pricing. Proceeds from the facility will be used for general corporate purposes.

The new facility further strengthens UAB's balance sheet by enhancing its ability to support clients' needs while advancing the Bank's strategic growth objectives.

The transaction was arranged by Abu Dhabi Commercial Bank PJSC, Emirates NBD, Emirates Islamic Bank, and First Abu Dhabi Bank as Initial Mandated Lead Arrangers and Bookrunners (IMLABs). Emirates NBD acted as the Global Facility Agent.

Shirish Bhide, Chief Executive Officer at UAB, said: "The successful completion of this Dh1.0 billion dual tranche facility is a timely addition to our funding base and reflects the sustained confidence of the UAE banking market in United Arab Bank's financial resilience and disciplined execution. This transaction further enhances our liquidity position and funding flexibility, enabling us to proactively support our clients and pursue growth opportunities aligned with our strategic priorities. It also advances our ongoing efforts to optimise our funding mix across conventional and Shariah-compliant structures. We value the strong partnership demonstrated by the arranging banks and appreciate their continued trust and support."

The transaction follows UAB's strong performance for the nine months ended 30 September 2025, with net profit rising 49 per cent year-on-year to Dh316 million. During the period, international rating agencies took positive rating actions, with Moody's Ratings upgrading the Bank's deposit ratings to Baa2, and Fitch Ratings upgrading UAB's Viability Rating to 'bb-' while affirming its Long-Term Rating at 'BBB+', with a stable outlook.

Shirish Bhide, Chief Executive Officer at UAB, said: "The successful completion of this Dh1.0 billion dual tranche facility is a timely addition to our funding base and reflects the sustained confidence of the UAE banking market in United Arab Bank's financial resilience and disciplined execution. This transaction further enhances our liquidity position and funding flexibility, enabling us to proactively support our clients and pursue growth opportunities aligned with our strategic priorities. It also advances our ongoing efforts to optimise our funding mix across conventional and Shariah-compliant structures. We value the strong partnership demonstrated by the arranging banks and appreciate their continued trust and support."

The transaction follows UAB's strong performance for the nine months ended 30 September 2025, with net profit rising 49 per cent year-on-year to Dh316 million. During the period, international rating agencies took positive rating actions, with Moody's Ratings upgrading the Bank's deposit ratings to Baa2, and Fitch Ratings upgrading UAB's Viability Rating to 'bb-' while affirming its Long-Term Rating at 'BBB+', with a stable outlook.

Khaleej Times