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Gulf Daily News Friday, 8th June 2012 19 In association with www.tradearabia.com Investcorp eyes $500m loan DUBAI: Investcorp, a well ahead of time, Investcorp a later date – usually when the Lynch, Commerzbank, ING date of drawdown, one of the bilateral facility also maturing Bahrain-based investment shows it is in a much stronger loan matures. and JP Morgan Chase have sources said. next year. company, is seeking a loan position than other investment An Investcorp spokesman in joined the loan and the trans- The final deal is expected to The overall amount being of more than $500 million houses in Bahrain which have Bahrain declined to comment. action is now being syndi- be signed by the end of June. refinanced is slightly more than to help refinance debt due faced refinancing issues. The refinancing is being cated to a small group of other The three-tranche facility $700m as some of the debt has Investcorp has already raised led by Barclays, Citigroup, banks. will be used to replace exist- already been paid off by the in 2013 as it looks to head the majority of the funds for the Deutsche Bank and Royal The loan, which will com- ing obligations – a $500m and company and Investcorp will off any potential refinanc- loan from banks in an earlier Bank of Scotland. mence in March 2013, carries $243m loan due in March and pay any shortfall using internal ing risk next year, sources stage of financing. Bank of America-Merrill a margin of 4.5pc from the April 2013 respectively and a cash, according to the sources. familiar with the matter said The loan is split between three yesterday. tranches, lasting 1.5 years, 2.5 The firm has done some years and 3.5 years, with banks high-profile deals in the past, joining the facility allocated including flotations of luxury across the three on a 15, 20 and brands Gucci and Tiffany & 65pc ratio, the sources said. Company, but like other pri- It is structured as a forward- vate equity houses in the region start agreement, where a loan has been hit by unfavourable is raised and signed by banks global market conditions. but the term does not begin But by securing a refinancing and the cash drawn down until Qatar’s surplus narrows to 3pc DUBAI: Qatar’s state budget surplus narrowed to 2.9 per cent of quarterly economic output in the third quarter of its 2011-12 fiscal year, as revenue dropped compared with the previous three months while spending took off, data showed yesterday. The world’s top exporter of liquefied natural gas booked a surplus of 5.1 billion riyals ($1.4bn) in October-December 2011, down from a surplus of 42.2bn riyals, or 25.6pc of GDP, in the previous quarter, preliminary estimates published by the central bank showed. On a cumulative basis, the budget surplus reached 45.1bn riyals in the first three quarters, or 7.1pc of GDP, a Reuters calculation based on data showed. Bourse move The government had targeted a surplus of 22.5bn riyals in the fiscal year, which ended in welcomed March. Revenue dropped almost 10pc to 55.8bn riyals in by society October-December from a year earlier, bringing cumulative income for the first three fiscal MANAMA: Bahrain Family quarters to 102pc of the 2011- Companies Society president 12 target. It fell 28pc compared Khalid Kanoo welcomed the with July-September. recent disposition of Bahraini Government expenditures family firms to list on the Bahrain jumped 62pc in the period from Bourse. a year ago to 50.7bn riyals He said the plan showed a and met 87pc of the full-year positive transformation in the target on a cumulative basis. thinking of owners who had real- Spending surged by 42pc from ised the nature of challenges and the previous quarter. requirements for their firms’ sta- The economy is expected bility, growth, capabilities and to slow this year from 14pc competitiveness. in 2011 as the impact of two He supported the move by decades of gas output expan- family firms in Bahrain and the sion fades. But the government region and highlighted success- plans to boost spending by ful experiences of some which 27pc in the 2012-13 fiscal year sought to grow in a world fast is likely to help keep it in high transforming with new tech- single digits. nologies, competitors and more In the 2011-12 budget, Qatar professional administrative tech- pencilled in spending worth niques. 139.9bn riyals, before it raised He said large family businesses basic salaries and social bene- had realised the need to trans- fits for state employees by 60pc form into public shareholding in September, while military firms to expand business verti- staff got 50pc-120pc rises. cally and horizontally. The measures were expected He said small and medium to add an estimated $1.6bn riy- enterprises with BD10 million als to government expenditure ($26.5m) capital had shown in 2011-12, the International interest in restructuring and Monetary Fund said in January transforming themselves into following annual consultations. bigger joint stock firms. Qatar, which plans to boost He said the society will hold infrastructure spending ahead a forum to discuss the outcome of hosting the 2022 soccer of its study regarding the status World Cup, assumed an oil and future of Bahraini family price of $55 per barrel in the firms. 2011-12 budget.
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