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
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
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
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.