Arcapita

Arcapita to conduct rights issue

The investment firm Arcapita has said it is conducting a rights issue to raise fresh funds from shareholders, as it prepares to refinance a $1.1bn loan due next year.
The firm also plans to market the rights issue to new institutional investors in the Gulf region, Malaysia and other parts of Asia.

Banks cut exposure to Kuwait Dar, Arcapita

Banks reduced their exposure to Bahraini investment house Arcapita and Kuwait's Investment Dar by selling syndicated loans at distressed levels this week.
The sales show that banks are becoming more willing to sell impaired Middle Eastern bank loans as they become more familiar with the debt restructuring process.

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Bahrain-Based Arcapita Bank 'BB-/B' Ratings Affirmed And Withdrawn At Issuer Request

S&P:
-- We are affirming the ratings on Arcapita.
-- The outlook remains negative.
-- We are withdrawing the ratings at the issuer request.

PARIS (Standard & Poor's) June 29, 2009--Standard & Poor's Ratings Services said today that it affirmed its 'BB-/B' counterparty credit ratings on Bahrain-based Arcapita Bank. The outlook remained negative. Standard & Poor's then withdrew its ratings on Arcapita at the bank's request.

The ratings affirmation reflects our conclusions that the assumptions factored into the ratings are still holding up. The ratings on Arcapita reflect our opinion of the bank's high leverage in the context of a very difficult economic and investment climate, as well as its pressured liquidity position. In our view, positive rating factors are the corrective measures that Arcapita is implementing and the support that the bank is receiving from shareholders. The ratings reflect our opinion of Arcapita's stand-alone credit profile and do not include any uplift for extraordinary external support.

Bahrain-Based Arcapita Bank Downgraded To 'BB-' On High Leverage; Outlook Negative

Press Release

PARIS (Standard & Poor's) June 1, 2009--Standard & Poor's Ratings Services said today that it has lowered its long-term counterparty credit ratings on Bahrain-based Arcapita Bank (Arcapita) to 'BB-' from 'BB' and removed them from CreditWatch, where they were first placed on Jan. 28, 2009, with negative implications. At the same time, we affirmed our 'B' short-term rating on Arcapita. The outlook is negative.

The ratings reflect our opinion of Arcapita's stand-alone credit profile and do not include any uplift for extraordinary external support. However, Standard & Poor's recognizes that ongoing support from Arcapita's shareholders has been significant and is incorporated in Arcapita's stand-alone credit profile.

"The rating action reflects our opinion of Arcapita's high leverage in the context of a very difficult economic and investment climate, which has challenged Arcapita's business model, reduced the value of its assets, and put pressure on its financial performance," said Standard & Poor's credit analyst Mohamed Damak.

Arcapita had raised more than two-thirds of a USD 400 mn rights issue

Arcapita had raised more than two-thirds of a USD 400 mn rights issue from existing shareholders and hoped to conclude the deal by the end of this month according to the CEO. Arcapita has a number of deals ahead, such as 2 acquisitions in Asian infrastructure or real estate sectors, buying up the assets from the Australian power investment firm Babcock & Brown Power and a USD 3.5 bn residential real estate project in Qatar with Kuwait's Al-Imtiyaz Investment.

S&P: Arcapita Bank Long-Term Rating Lowered To 'BB'; Remains On CreditWatch Negative; 'B' Short-Term Affirmed

Press Release

PARIS April 6, 2009--Standard & Poor's Ratings Services said today that it lowered its long-term counterparty credit rating on Bahrain-based Arcapita Bank to 'BB' from 'BB+' and kept the rating on CreditWatch with negative implications where it was initially placed on Jan. 28, 2009. At the same time, Standard & Poor's affirmed its 'B' short-term rating on Arcapita.

"The rating action reflects the very weak investment climate, which has challenged Arcapita's business model and has decreased the value of its assets in our view," said Standard & Poor's credit analyst Mohamed Damak. "In this light, we believe Arcapita's leverage indicators have weakened, which has put pressure on its credit profile."

Arcapita has reported that it is implementing a set of measures to reduce its leverage and improve its liquidity position. It has already:

--Raised $300 million through two-year facilities from strategic investors;

--Raised $100 million of capital from a strategic shareholder in the Gulf; and

--Sold and leased-back its head office and a related piece of land in a $400 million transaction.

S&P: Arcapita Bank B.S.C. Downgraded To 'BB+/B'; 'BB+' Placed On CreditWatch Negative

Press Release

PARIS (Standard & Poor's) Jan. 28, 2009--Standard & Poor's Ratings Services said today that it has lowered its long- and short-term counterparty credit ratings on Bahrain-based Arcapita Bank B.S.C. to 'BB+/B' from 'BBB/A-2' and placed the long-term rating on CreditWatch with negative implications.

"The downgrade and CreditWatch placement reflect our opinion of Arcapita's weak liquidity profile amid an increasingly difficult operating environment," said Standard & Poor's credit analyst Mohamed Damak.

At the same time, we believe that the value of Arcapita's own investments--mainly in private equity and real estate--could decline in value given current market conditions (like other private equity firms). We view Arcapita's leverage as high. We understand that Arcapita made certain investments in 2008 that it was not able to fully place with customers that triggered a decline in liquidity and an increase in investment leverage (as measured by the ratio of total investments to total equity).

ProLogis and Arcapita Form Venture to Provide Modernized Logistics Facilities in the GCC

ProLogis released on 8 April that they entered into a 50/50 joint venture agreement to create ProLogis Middle
East with Arcapita, an Islamic investment bank based in Bahrain. The Joint-Venture will develop and acquire a USD 1 bn portfolio of advanced
logistics warehouse space in the Gulf Cooperation Council (GCC) region.

Jeff Schwartz is chairman and chief executive officer of ProLogis.
Atif Abdulmalik is chief executive officer of Arcapita. "
Joseph Ghazal is senior vice president and head of
ProLogis Middle East. "

Companies:
http://www.prologis.com
http://www.arcapita.com

Source: http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/0...

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