NBF Capital spearheads AED 180 million maiden syndication for ZAFCO
Transaction highlights NBF Capital’s market-leading corporate advisory capabilities
National Bank of Fujairah PJSC (NBF) announced today that NBF Capital Limited has successfully concluded a maiden syndication transaction valued at AED 180 million for ZAFCO FZCO. NBF Capital, a fully-owned subsidiary of NBF and regulated by the Dubai Financial Services Authority, acted as the financial advisor and book-runner for the transaction.
The five-year term loan facility was fully underwritten by NBF, which also acted as the facility and security agent. ZAFCO, a leading global distributor, importer and exporter of automotive tires, batteries and lubricants that is based in the UAE, will use the funds to finance its core working capital requirements.
The syndication had a total of four participating banks, with NBF and First Gulf Bank acting as the mandated lead arrangers, and Mashreq Bank and National Bank of Oman as arrangers.
P.B. Das, Senior Executive Officer of NBF Capital, said: "This transaction further establishes our position as a bespoke financial services provider in the UAE. By structuring sophisticated advisory solutions that meet the increasingly diverse requirements of our clients as they take their businesses to the next level, NBF Capital shows time and again its ability to create value for companies of varying sizes from industries as diverse as precious metals, healthcare, information technology, trading and manufacturing.
"We are pleased to be able to play a leading role in ZAFCO's maiden syndication. It is good to also witness strong interest from banks for this transaction, demonstrating not just market confidence in ZAFCO's management and the company's potential, but growing recognition and trust of NBF Capital's deal making capabilities."
With this latest transaction, NBF Capital would have over AED 2.5 billion worth of deals that are closed or in the pipeline. It was recently awarded "Best Corporate Advisory Service" at the Banker Middle East UAE Product Awards 2015.
Mr. Amir Abbas, Executive Director, ZAFCO said: "We would like to thank all participating banks for their support, which is testament to their trust in our company and future. This transaction is invaluable in our ongoing efforts to strengthen ZAFCO's position as a leading supply chain management company in the automotive parts industry and will also allow us to constantly expand and improve on our service offerings on behalf of our customers. We would also like to thank the NBF Capital team for the professional and collaborative way in which they concluded the syndication."
About NBF Capital Limited
Established in May 2013, NBF Capital Limited ("NBF Capital") is a bespoke financial solutions provider specialising in consultancy and advisory services ranging from loan syndication, mergers and acquisitions, business formation to corporate restructuring. A fully-owned subsidiary of National Bank of Fujairah (NBF), an award-winning, full services corporate bank with a track record spanning over 30 years, NBF Capital is well-positioned to leverage the parent's client relationships, business expertise and local insights to help companies make the best of opportunities within the UAE and beyond.
NBF Capital operates out of the Dubai International Financial Centre. It is regulated by the Dubai Financial Services Authority.
About National Bank of Fujairah PJSC
Incorporated in 1982, National Bank of Fujairah PJSC (NBF) is a full services corporate bank with strong corporate and commercial banking, treasury and trade finance expertise as well as an expanding suite of personal banking and Shariah compliant services.
Leveraging its deep banking experience and market insight within Fujairah and the UAE, NBF is well-positioned to build lasting relationships with its clients and help them achieve their business goals.
NBF's key shareholders include the Government of Fujairah, Easa Saleh Al Gurg LLC and Investment Corporation of Dubai. Rated Baa1/Prime-2 by Moody's and BBB+/A-2 by Standard & Poor's, both with a stable outlook, the bank is listed on the Abu Dhabi Securities Exchange under the symbol "NBF". It has a branch network of 15 across the UAE.
About ZAFCO FZCO
ZAFCO FZCO, a leading distributor, importer and exporter of automotive tires, batteries and lubricants in the UAE. Within a short span of two decades, it has grown to become a global player and currently distributes and sells tires, batteries and lubricants of leading international brands and its own brand to retail companies and wholesalers in 85 countries, working closely with 1250+ customers.
It also launched its own brand ZEETEX for tires, batteries and lubricants in the year 2006 which has been well received and currently accounts for 23-25% of total volume sales i.e. 1.2M tires. This brand is expected to continue to record strong YOY growth.