DUBAI Aug 14 Bahrain's Arab Banking Corp (ABC) on Thursday signed to obtain a $750 million, three-year loan facility from a group of banks, expanding the facility from an originally planned $500 million.
The facility, to be arranged by HSBC, National Bank of Abu Dhabi, Natixis and Sumitomo Mitsui Banking Corp, will pay an interest rate of 120 basis points above the London interbank offered rate (Libor), the lender said at a signing ceremony in Dubai.
The syndication was launched in an initial amount of $500 million but ultimately attracted offers of $800 million from 17 regional and international banks, ABC said in a statement.
Funds from the loan will be used for general corporate lending purposes, it said.
Banks in the Gulf, flush with deposits, have become eager to lend over the past year, pushing down loan rates and causing many borrowers to avoid the bond market. (Reporting by Archana Narayanan; writing by Praveen Menon; editing by Andrew Torchia)