KUWAIT: Investment Dar has closed the first tranche of its SAR1.5 billion (US$400 million) Islamic syndication. The three-year Murabahah deal was priced at 200 basis points over Saudi Arabia Interbank Offered Rate (SAIBOR). The first tranche, worth SAR600 million (US$160 million), was funded by Saudi-based Al Rajhi Bank and Oman’s Bank Muscat.
Dar’s executive vice president, Amr Abou Al-Seoud, said the funds would mostly be used to refinance the company’s more expensive and shorter-term loans.
The second tranche of the loan is expected to close by December despite the current economic situation, with Deutsche Bank acting as investment agent and Allen & Overy as legal adviser for the banks.