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News

Gulf Capital secures ground-breaking AED500 million revolver acquisition facility from Abu Dhabi Commercial Bank to finance its ongoing investment programme

07 February 2012

Flexible revolver facility gives Gulf Capital the firepower and flexibility to actively consider acquisitions across its various business units

Abu Dhabi, 7 February 2012: Gulf Capital and Abu Dhabi Commercial Bank ("ADCB") have signed today a ground-breaking five-year revolving facility of AED 500 million to help finance Gulf Capital's growing pipeline of investments across its various business units. Gulf Capital is one of the most active alternative asset managers in the Middle East, focused on investing in private equity, real estate, credit and mezzanine across the region. The new flexible medium-term revolver will allow the Firm to leverage its balance sheet and finance its investments as they arise.

Mr. Ala'a Eraiqat, CEO of ADCB and a member of the Board, said: "ADCB has enjoyed a strong relationship with Gulf Capital since its inception and our understanding of their business model and investment strategy allowed us to structure a flexible revolver facility that meets their unique business needs. We look forward to continuing our close cooperation with Gulf Capital and helping them grow their franchise."

Dr. Karim El Solh, CEO of Gulf Capital said: "The speed of response of ADCB and the innovation and flexibility embedded in the current acquisition financing facility made ADCB the clear choice for Gulf Capital. The medium-term revolving structure permits us to draw down the loan facility when we find suitable investments and allows us to boost Gulf Capital's overall return on equity. ADCB has proven itself as a true reliable banking partner and demonstrated its strong financial commitment, a remarkable endorsement in light of the current difficult economic environment. This new substantial facility of AED500 million, along with our original paid up capital of AED1,225 million, positions Gulf Capital as one of the best capitalised investment firms in the region, allowing us to pro-actively seize investment opportunities as they arise."

Mr. Colin Fraser, Executive Vice President and Head of Wholesale Banking at ADCB, said: "We are delighted to support Gulf Capital through this financing, as there have not been many deals of this nature concluded in the UAE market before. The deal is unique in that, while serving to achieve the client's needs and objectives in funding its investments with reasonable flexibility, it is structured in line with best practice for private equity finance. The deal has been configured through a strong understanding of the client's business model and will mitigate risk through sectoral caps imposed. We are excited about our partnership with Gulf Capital and its portfolio companies and look forward to taking it to new heights."

Gulf Capital's Chief Financial Officer, Christopher Foll, said: "We are delighted with the support we have received from ADCB. The size and tenor of this new acquisition facility reflects the strong partnership with ADCB and the strength of their balance sheet. This substantial facility establishes a new source of accessible funding for Gulf Capital's balance sheet and will be used to fund investments in multiple opportunities across our various business units."

About Gulf Capital

Gulf Capital is a leading alternative investment company focused primarily on investing capital in the GCC region. Incorporated in Abu Dhabi in 2006 as a Private Joint Stock Company, Gulf Capital was established with a capital base of AED 1.225 billion (USD 330 million) from 300 of the most prestigious institutional and individual investors in the Gulf. The Firm is currently investing its $533 million GC Equity Fund II, raised from regional and global investors. It is focused on acquiring sizeable and controlling stakes in highly profitable and rapidly growing companies within a select number of fast-growing industries in the GCC region. Gulf Capital was awarded the "Best Private Equity in the Middle East" Award by Banker Magazine in 2011. Gulf Capital expanded its alternative asset management platform by entering into the real estate development arena in a joint-venture with the Related Companies, the most prominent US real estate developer, to form Gulf Related. The Firm also recently announced the launch of a Credit and Mezzanine Business to meet the financing needs of fast growing companies across the region. With its private equity, real estate and credit initiatives, Gulf Capital is today one of the largest alternative asset managers in the Middle East. For more information about Gulf Capital, please visit www.gulfcapital.com.

About ADCB:

ADCB was formed in 1985 and as at 31 December 2011 employed over 4,000 people from 49 nationalities, serving approximately 455,000 retail customers and over 34,000 corporate and SME clients in 48 branches, 4 pay offices in the UAE, two branches in India and 1 offshore branch in Jersey. It is the third largest bank in the UAE and second largest in Abu Dhabi by assets, at AED 184 bn as at 31 December 2011.

ADCB is a full-service commercial bank which offers a wide range of products and services such as retail banking, wealth management, private banking, corporate banking, commercial banking, cash management, investment banking, corporate finance, foreign exchange, interest rate and currency derivatives and Islamic products, project finance and property management services.

ADCB is owned 58.08% by the Abu Dhabi Government through the Abu Dhabi Investment Council. Its shares are traded on the Abu Dhabi Securities Exchange. As at 31 December 2011, ADCB's market capitalisation was AED 16 bn.