A landmark AED 500 million syndicated loan was concluded for the Eastern and Southern African Trade and Development Bank by Mashreq, a leading financial institution in the MENA region. The facility marks TDB’s first ever AED denominated syndicated loan deal.
Mashreq acted as Sole Coordinator, Initial Mandated Lead Arranger, Bookrunner, and Facility Agent for the debut deal. The facility was launched in the month of July and was successfully subscribed by 7 leading institutions from the Gulf region. The facility has a tenor of 1 year and features an extension option. The facility proceeds will be used towards general corporate purposes.
This transaction provides TDB access to the evolving, dynamic and deep AED liquidity pool allowing it to develop relationships with lenders with unique lending considerations.
This Facility will enable TDB to diversify its funding sources and to broaden its investor base by tapping into the AED currency market. The Facility will complement other funding sources of the Bank and bolster its capacity to support the trade of strategic commodities in its Members States.
The financing underscores Mashreq’s goal of connecting investors with borrowers across continents and demonstrates Mashreq’s continued commitment to its cross-border financing strategy and the robust relationships with leading financial institutions globally.
The relationship between Mashreq and TDB started 15 years ago. Mashreq has acted as Initial Mandated Lead Arranger for several of TDB’s transactions jointly raising more than USD 4 billion for TDB over the last 10 years.