United Arab Emirates: The United Arab Bank (UAB) has announced the successful conclusion of its AED1 billion ($272 million) senior unsecured dual tranche term loan facility.

The new facility further strengthens UAB’s balance sheet by enhancing its ability to support clients’ needs while advancing the Bank’s strategic growth objectives.

The successful closing reflects strong market confidence in its financial strength, prudent management, and sustainable growth strategy.

The dual tranche borrowing comprises a conventional tranche and a commodity Murabaha tranche, concluded at competitive market pricing. Proceeds from the facility will be used for general corporate purposes.

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 (IMLABs). Emirates NBD acted as the Global Facility Agent.

Commenting on the transaction, Shirish Bhide, the Chief Executive Officer at UAB, said: "The successful completion of this AED1 billion dual tranche facility is a timely addition to our funding base and reflects the sustained confidence of the UAE banking market in our financial resilience and disciplined execution."

The transaction follows UAB’s strong performance for the nine months ended September 30, 2025, with net profit rising 49% year-on-year to AED316 million.

"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," noted Bhide.

"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," he added.

During the period, international rating agencies took positive rating actions, with Moody’s Ratings upgrading the Bank’s deposit ratings to Baa2, and Fitch Ratings upgrading UAB’s Viability Rating to ‘bb-’ while affirming its Long-Term Rating at ‘BBB+’, with a stable outlook.