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Arab Bank Undertakes $500m Syndicated Loan, Debut Transaction in its History
Jordan-based Arab Bank plc appointed Credit Agricole (CALYON), HSBC Bank Middle East Limited and JP Morgan as lead arrangers and book runners for a $500 million fully underwritten syndicated loan. This loan, first of its kind to be ever undertaken by the bank, aims at “diversifying funding resources and the efficient management of assets and liabilities” of the bank. Arab Bank, established in 1930, operates in 29 countries. The bank recorded profits of $625 million in 2006, and assets and shareholders’ equity were at $32.4 billion and $5.9 billion respectively for the same period.
Ahli United Bank to Acquire 35% of Oman’s Alliance Housing Bank
Bahrain’s Ahli United Bank (AUB) signed a Memorandum of Understanding (MoU) to acquire 35% of Oman’s Alliance Housing Bank (AHB). This acquisition comes in the form of AUB’s full subscription in AHB’s new planned increase in capital. AUB will thus acquire 113 million common shares of AHB for a total of OR50.9m ($134m). This step is in line with AUB’s strategy of establishing a strong Pan Gulf banking group. AUB, established in 2000, currently employs 1,917 people and has 17 branches in Bahrain as well as branches in Kuwait, Qatar, Iraq, Egypt and the United Kingdom. AUB reported profits of $207m in 2006, up 26% year-on-year.
BSA: Middle East/Africa Piracy Rate at 60% in 2006
US-based Business Software Alliance (BSA) released in coordination with technology research firm International Data Corporation (IDC) its 2006 software piracy report revealing a piracy rate of 60% in the Middle East/Africa Region in 2006, up from a rate of 57% a year before, and much higher that the worldwide average of 35%. Total losses from piracy in the region amounted to $1.997 billion also up from last year’s $1.615 billion. Algeria ranked first among Arab countries in terms of piracy rate recording one of 84% with losses amounting to $62 million. It was followed by Tunisia (79%, $55 million), Lebanon (73%, $34 million) and Morocco (66%, $53 million). Next came Kuwait (64%, $60 million), Egypt (63%, $88 million), Jordan (61%, $19 million). And finally Oman (62%, $25 million), Bahrain (60%, $23 million), Qatar (58%, $23 million), and Saudi Arabia (52%, $195 million). The UAE was the Arab country with the lowest piracy rate of 35% in 2006, in line with the worldwide rate. UAE’s losses from piracy amounted to $62 million.
