Liquidity House signs $125 million syndicated Ijarah Facility for Burgan Company

Liquidity Management House signed a 125 million U.S. dollars three year debut syndicated Ijarah Facility for Burgan Company for Well Drilling Trading and Maintenance on Tuesday.

Liquidity House, BNP Paribas and Gatehouse Bank were the initial mandated lead arrangers (IMLA). Liquidity House and Gatehouse are also book runners for the Ijarah facility. In general syndication, the IMLAs were joined by Ahli United Bank B.S.C and Boubyan Bank K.S.C as mandated lead arrangers. The funds raised through the facility will be used to finance the purchase of four new oil rigs.

Addressing the media Chairman of Burgan Company for Well Drilling Trading and Maintenance, Ahmed AlـHamad said that being the debut facility for Burgan, he was overwhelmed by the support received from the banks.

Chairman and Managing Director of Liquidity House Emad AlـMonayea said: "The successful signing of the transaction was a testimony to the financial soundness and reputation of Burgan and demonstrated the strength of the Kuwait economy."
He added "the transaction will build confidence in the local, regional and international market. At this stage we need more transaction like Burgan, a company with sound financial, strong cash flows and solid leadership."

Since its launch last year, Liquidity House has so far concluded three international syndicated facilities. "This demonstrates Liquidity House's capability and in particular Kuwait Finance House {KFH} Group's commitments towards regaining market confidence and speak volumes about a truly forward looking outlook of the Group."

Meanwhile, David Testa CEO of Gatehouse said: "This was the first Sharia compliant Kuwaiti syndication this year and also Burgan's debut capital markets issuance."
He credited the successful close of the transaction in spite of the adverse market condition, to the strong performance of Burgan who worked closely with the Initial Mandate Lead Arrangers. He also praised the diligence of the other Initial Mandate Lead Arrangers as well as thanking the participants for making this deal a resounding success.

Rami Falah Regional Head of Islamic Banking Middle East for BNP Paribas said: "BNP Paribas is very proud to take part in this transaction as a Mandated Lead Arranger, through its Islamic Banking arm Najmah which was established in Bahrain in 2003."
"This transaction is reflective of BNP Paribas commitment to Islamic Banking and the region. It also shows that the collective ability of local and international banks to work together on such deals with assist in improving market confidence," he concluded.