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Business Insider Bangladesh

City Bank avails $45mn syndicated loan from Bank Muscat

BI Report || BusinessInsider

Published: 12:08, 2 July 2022   Update: 12:22, 2 July 2022
City Bank avails $45mn syndicated loan from Bank Muscat

City Bank logo.

The City Bank has successfully closed a $45 million syndicated loan, which was arranged by Bank Muscat, a financial services provider in the Sultanate of Oman, City Bank said in a statement on Saturday.

The transaction, which was initially launched for $25 million with a Greenshoe option, received strong participation from reputed international banks across different geographical locations including Europe, the Middle East and Africa. It was subsequently scaled up by 80 percent, finally closing at $45 million.

This is the third successful syndicated loan facility arranged by Bank Muscat for City Bank, and the first one, which is SOFR-linked. In addition to being the arranger, Bank Muscat also acted as the book runner for this transaction, said a press release.

City Bank will be able to use the loan to finance its trade transactions. This will in turn assist the country’s trade activities in the current world scenario, and support the growth of the economy.

Sheikh Mohammad Maroof, additional managing director and chief business officer of City Bank, expressed delight at the closure of the syndicated loan.

“We are extremely happy to see the overwhelming response from global banks to City Bank’s syndication loan. Being oversubscribed by 80% portrays City Bank’s strength and acceptance in global financial markets," said Maroof.

"In the current global scenario, we have taken multiple initiatives including this loan to ensure strong liquidity for the bank and cater to the increasing trade requirements of our clients. I would like to thank Bank Muscat for the longstanding relationship with City Bank and for helping us close this deal,” he added.

It must be noted that City Bank availed the first syndicated loan of EUR 20 million from Bank Muscat in 2019, which was the first such loan by a Bangladeshi bank that was arranged by an Omani bank. In 2020, City Bank followed up its initial loan with a $30 million syndicated loan.

With assets worth over $33 billion, Bank Muscat is the leading bank in the Sultanate of Oman with the largest banking network and a 35 percent market share.

Nagad
Walton