Ittihad secures USD 450 mn credit facility: Abu Dhabi-based non-oil investment conglomerate Ittihad International Investment secured a USD 450 mn sustainability-linked, senior unsecured revolving credit facility (RCF), according to a press release.

The details: The facility has a five-year tenor — divided into an initial three-year term with two one-year extension options. It also includes an accordion feature, allowing for an increase in the facility size. The facility is divided into two branches. The breakdown:

  • Tranche A (USD 225 mn): Allocated for general corporate purposes, replacing an existing USD 105 mn RCF that remained undrawn.
  • Tranche B (USD 225 mn): Replaces Ittihad’s 90-day subsidiary-level working capital facilities. Of this, USD 145 mn will settle outstanding working capital, while USD 80 mn will remain on standby for liquidity needs — making the transaction leverage-neutral.

This flexible facility strengthens Ittihad’s capital base, enhances liquidity, and lowers financing costs, supporting its expansion plans. CFO Zahi Abu Hamze noted that the transaction aids Ittihad’s efforts to improve its credit rating. Last October, the conglomerate received an ESG provisional rating of AAA from MSCI.

ADVISORS- Emirates NBD, Commercial Bank of Dubai, and First Abu Dhabi Bank acted as Mandated Lead Arrangers and Bookrunners and sustainability joint coordinators. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Emirates Islamic Bank acted as joint arrangers.

Privately owned Ittihad operates across four key verticals: consumer goods manufacturing, infrastructure and building materials, business services, and healthcare, according to a previous press release. With investments in the UAE, Saudi Arabia, and Egypt, it contributes 4% of the UAE’s non-oil manufacturing exports.

Tags: