INVESTCORP RAISES 60 MLN DLR FACILITY
Bahrain-based <Arabian Investment
Banking Corp (Investcorp) EC> is raising 60 mln dlrs through a
medium-term revolving multi-purpose facility, arranger and
co-lead manager <Arab Banking Corp> (ABC) said.
    ABC said the deal had originally been mandated for 50 mln
dlrs, but a lead management group of six banks, each
underwriting 10 mln dlrs, had been formed prior to general
syndication, which started today.
    Investcorp, set up in 1982, specialises in buying companies
and property in industrialised nations. It then sells shares in
these to investors in the Gulf region.
    ABC said Investcorp's facility can be used "alternatively or
simultaneously" through the following facilities:
    - issue of euronotes and or advances through tender.
    - extension of committed advances by the underwriting
banks, a so-called "back-stop" facility.
    - issue of contingent obligations such as performance
letters of credit, letters of guarantee or the receipt of
quotations for interest rate swaps, interest rate caps and
collars from a panel of selected banks.
    ABC said the final option gives Investcorp the right to
request facilities on an uncommitted basis.
    ABC said the facility has a maturity of three years from
signature, with bullet repayment.
    It said the interest margin over London Interbank Offered
Rates (LIBOR) for the committed advances will be based on the
total utilisation of the facility - 17.5 basis points for up to
one third, 20 basis points for up to two thirds and 22.5 points
for an amount above that level.
    Banks are being invited to underwrite the facility at a
flat fee of 0.325 pct for five mln dlrs, 0.275 pct for three to
four mln and 0.25 pct for one to two mln. Syndication runs
until April 8.
 REUTER
