Mashreq Closes USD 434 Million Limited Recourse Syndicated Financing Facility

Transaction Enables Leighton International to Merge its Operations in the Arabian Gulf with Al Habtoor Engineering and Take a 45% Stake in the New Entity

Dubai, United Arab Emirates, 15 December 2007: Hong Kong and Shanghai Banking Corporation, Mashreq and Royal Bank of Scotland, acting as Bookrunners, have successfully closed the general syndication of a US$434 Million financing facility for LMENA No.1, a subsidiary of Australia based, Leighton Holdings Limited.  The facility was jointly underwritten by Abu Dhabi Commercial Bank and the Bookrunners.

Leighton International Limited has day to day management of the investment and Leighton will undertake its activities in the region through Al Habtoor.

The deal is one of the first limited recourse transactions completed around a local corporate entity in the UAE.  It represents one of the first high-profile investments by a leading international firm in a prominent UAE contracting company. Caterpillar Financial Australia Limited, Commonwealth Bank of Australia, First Gulf Bank, Abu Dhabi Investment Company, Ahli United Bank B.S.C., Gulf International Bank B.S.C., and National Bank of Oman (S.A.O.G.) joined in the general syndication. Participation of leading international and regional banks in the transaction reinforces the confidence of the banking sector in the construction industry in the GCC and the UAE in particular.

To celebrate the conclusion of the successful syndication, a commemorative event was held at the Kempinski Hotel in Dubai and was attended by senior management officials from Leighton, Al-Habtoor Engineering, Mashreq and delegates from a number of participating banks.

Scott Charlton, Chief Financial Officer of Leighton Holdings, confirmed to the delegates that the Leighton Group greatly appreciates their support and expression of confidence in the acquisition and the continued success of the Al Habtoor Leighton Group and that they are pleased to have solid participation from both local and international banks.
 
Speaking on the occasion, Mr. Abbas Hasan, Head of Investment Banking in Mashreq said, “This is a landmark transaction for Mashreq. It reinforces our stature as a leading regional bank capable of structuring complex transactions and successfully syndicating large and prominent debt deals to a larger banking market.”

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About Mashreq

Mashreq is the largest private bank in the UAE and also the second oldest. Founded in 1967 as Bank of Oman, the bank has played a pioneering role in the industry, particularly in retail banking. Among its many firsts it was the first to launch such products as travellers’ cheques, credit cards and ATMs.

It is invariably among the highest performing banks in the region. Last year it recorded a Net Profit of over US$470 million from a Total Operating Income of $844 million. At the end of last year its Total Assets stood at $15.2 billion

Mashreq has received numerous international awards, particularly for quality management. According to independent research it has more ISO certifications than any bank in the region by a wide margin.

As a leading financial Institution in the UAE Mashreq aims to be world class in every facet of its business, including its social responsibility to the community it serves. Towards this goal the bank pays particular attention to recruiting, training, developing and retaining UAE National employees.

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