UAB Secures AED 1 Billion Senior Unsecured Dual Tranche Loan Facility

United Arab Bank has closed a AED1.0 billion Senior Unsecured Dual Tranche Term Loan Facility with a two-year tenor, reinforcing the bank’s funding base and balance sheet. The facility is designed to support client financing needs and help advance United Arab Bank’s strategic growth plans in the UAE’s banking sector.

The new borrowing supports United Arab Bank’s existing momentum, following a strong set of financial results. For the nine months ended 30th September 2025, the bank’s net profit rises 49 percent year-on-year to AED316 million, underscoring improved earnings, capital strength, and the capacity to absorb additional funding.

The transaction consists of two separate tranches, a Conventional tranche and a Commodity Murabaha tranche, both structured as senior unsecured funding. United Arab Bank states that the dual tranche facility is concluded at competitive market pricing, and that proceeds are allocated for general corporate purposes, giving management flexibility over deployment.

Abu Dhabi Commercial Bank, Emirates NBD, Emirates Islamic Bank, and First Abu Dhabi Bank act as Initial Mandated Lead Arrangers and Bookrunners on the deal. Emirates NBD serves as the Global Facility Agent. The participation of multiple UAE institutions signals continued lender confidence in United Arab Bank’s credit profile and management strategy.

Commenting on the transaction, Shirish Bhide, Chief Executive Officer at UAB, 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."

Ratings agencies respond positively to United Arab Bank’s performance over the same nine-month period. Moody’s Ratings upgrades the bank’s deposit ratings to Baa2. Fitch Ratings raises the Viability Rating to ‘bb-’ and affirms the Long-Term Rating at ‘BBB+’, with a Stable Outlook, supporting the case for the UAB term loan facility.

United Arab Bank notes that the term loan facility strengthens liquidity, diversifies funding across conventional and Shariah-compliant channels, and supports planned growth. Together with higher profits and improved ratings from Moody’s Ratings and Fitch Ratings, the bank presents the transaction as part of a measured approach to long-term balance sheet management.

With inputs from WAM