United Arab Bank has completed an AED1.0 billion, two-year senior unsecured dual tranche term loan facility, strengthening its funding base and balance sheet flexibility.
The facility enhances the Bank’s capacity to support client requirements while advancing its strategic growth objectives. Moreover, the successful closing reflects continued market confidence in the Bank’s financial strength, prudent management, and sustainable growth strategy.
Facility structure and use of proceeds
The dual tranche facility comprises a conventional tranche and a commodity Murabaha tranche, concluded at competitive market pricing. Additionally, proceeds will be applied toward general corporate purposes, supporting liquidity and funding optimisation across conventional and Shariah-compliant structures.
The transaction was arranged by Abu Dhabi Commercial Bank, Emirates NBD, Emirates Islamic Bank, and First Abu Dhabi Bank as initial mandated lead arrangers and bookrunners. Emirates NBD acted as the global facility agent.
Management commentary and recent performance
Commenting on the transaction, Shirish Bhide, Chief Executive Officer at United Arab Bank, said, “The successful completion of this AED1.0 billion dual tranche facility is a timely addition to our funding base and reflects the sustained confidence of the UAE banking market in United Arab Bank’s financial resilience and disciplined execution.
“This transaction further enhances our liquidity position and funding flexibility, enabling us to proactively support our clients and pursue growth opportunities aligned with our strategic priorities. It also advances our ongoing efforts to optimise our funding mix across conventional and Shariah-compliant structures. We value the strong partnership demonstrated by the arranging banks and appreciate their continued trust and support.”
The transaction follows strong performance for the nine months ended 30 September 2025, with net profit rising 49 percent year on year to AED316 million. During the period, international rating agencies took positive actions, as Moody’s upgraded deposit ratings to Baa2, while Fitch upgraded the Viability Rating to ‘bb-’ and affirmed the Long-Term Rating at ‘BBB+’ with a stable outlook.
