INVESTCORP SIGNS FOR 75 MLN DLR CREDIT FACILITY
<Arabian Investment Banking Corp EC>
(Investcorp) signed for a 75 mln dlr revolving credit facility,
one of the lead managers <Arab Banking Corp>, ABC, said.
    The facility was first mandated for 50 mln dlrs but was
increased before syndication to 60 mln when a lead group of six
banks was formed. Strong demand during syndication led to
another increase in the final amount to 75 mln dlrs.
    ABC said the facility, with a final lending syndicate of 32
banks from 13 countries, is part of Investcorp's strategy to
develop and diversify its source of funds and reduce its
borrowing costs.
    ABC as overall arranger said the facility will be used to
finance Bahrain-based Investcorp's general corporate funding
requirements. It can be exercised in three different ways.
    These are through the issue of euronotes or advances by
tender, the extension of committed advances by underwriting
banks, or the issue of contingent obligations from a panel of
selected banks.
    The facility has a maturity of three years, with interest
on committed advances based on utilisation from 17.5 basis
points over London Interbank Offered Rates for one third to 20
basis points for two thirds and 22.5 for an amount above that
level.
 REUTER
