Ittihad International Investment, a prominent Abu Dhabi-based private investment conglomerate, has successfully secured a $450 million sustainability-linked revolving credit facility (RCF) from a consortium of local banks. The facility enhances Ittihad’s financial flexibility and aligns with its commitment to sustainability, reinforcing its strategic growth objectives.
The facility is structured in two equal tranches: $225 million for corporate purposes and $225 million to replace short-term working capital and provide liquidity. The agreement is backed by key financial institutions including Emirates NBD, Commercial Bank of Dubai, and First Abu Dhabi Bank, which acted as mandated lead arrangers and bookrunners. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Emirates Islamic joined as joint arrangers.
Strengthening Financial Position
The $450 million facility has a five-year term, including a three-year commitment with the option for two one-year extensions at the discretion of the banks. Additionally, an accordion feature allows for the facility size to be increased if required. The first tranche of $225 million replaces an existing undrawn RCF of $105 million, while the second tranche covers the replacement of short-term working capital facilities—$145 million to settle outstanding debt and $80 million for additional liquidity.
Ittihad’s CFO, Zahi Abu Hamze, highlighted the positive impact of the facility, stating, “This new sustainability-linked facility strengthens our financial position and supports the continued growth of our diverse $1.4 billion investment portfolio across key sectors.”
Driving Strategic Growth and Sustainability
Ittihad International Investment’s portfolio spans across several high-growth industries, including industrial manufacturing, infrastructure, building materials, business services, and healthcare. With this new credit facility, the conglomerate aims to further bolster its investments while also enhancing its environmental, social, and governance (ESG) performance.
The sustainability-linked nature of the facility underscores Ittihad’s ongoing commitment to sustainable business practices and its strategic goal of driving positive change across its diverse investment holdings. This deal positions Ittihad well to pursue its growth trajectory while maintaining a strong focus on responsible investment and financial stability.
