Mashreqbank and Arab Bank are reported to have agreed to jointly provide a loan facility to support the working capital requirements of the main works contract for Bahrain International Airport modernisation programme, awarded to Arabtec Holding (Arabtec) and Tepe Akfen Yatirim Insaat ve Isletme (TAV) JV in January 2016. The size of the facility is BHD107mn (cAED1.1bn), while the total value of the Bahrain contract is USD1.1bn (cAED4.0bn), of which Arabtec has a c60% share. We note that while the drawdown of the facility is expected to add further upward pressure to Arabtec’s leverage ratios, the secured funding will likely provide smoother execution of the project, reflecting positively on the company’s reported revenue. We note that the project had already commenced is 2Q16. (Bloomberg)   Arabtec (DU): AED1.50 as of 13 July 2016, Rating: Sell, FV: AED1.13 per share, MCap: USD1,886 million, ARTC UH / ARTC.DU