Port of Fujairah raises AED 900 million to realise infrastructure plans
POF raises AED 900 million to realise infrastructure plans National Bank of Fujairah and Commercial Bank of Dubai underwrite the heavily oversubscribe debut syndication loan
Port of Fujairah (POF), the Fujairah based Port and Terminal Operator and the second largest bunkering location worldwide, has signed an agreement to raise AED 900 million through a syndicated facility.
The loan will be used for capital expenditure towards expansion of existing facilities and for new facilities. The facility, arranged by National Bank of Fujairah (NBF) as the Initial Mandated Lead Arranger (IMLA) and Commercial Bank of Dubai as the Mandated Lead Arranger (MLA), was fully underwritten by both banks and was heavily oversubscribed allowing for the borrower to increase the facility size towards pre-defined capital expenditure.
The growth of the POF, so far has been financed by internal cash generations, making this a debut syndicated facility.
"The fact that the syndication loan was heavily oversubscribed is a testimony to the overall strength of the POF. We have clearly defined our expansion plans and their objectives, which will benefit not only the POF but also the commercial support services in Fujariah and the rest of the UAE," said His Highness Sheikh Saleh Bin Mohammed Al Sharqi, Chairman of POF and the Department of Industry & Economy, Government of Fujairah.
"NBF is extremely pleased to have been at the forefront for arranging POF's debut financing facility and to have successfully closed this syndication with POF. The strength of the borrower and facility structure has been evident in the strong interest demonstrated by various banks. On behalf of all banks in the syndicate we would like to extend our congratulations to POF for successfully closing their first syndicated facility and we would like to thank the banks for their support and for demonstrating a high degree of confidence in the management and growth plans of POF" said Steve Mullins, CEO, NBF.
The syndication had a total of 13 banks participating, with Abu Dhabi Commercial Bank, Arab African International Bank, Arab Bank plc, Bank Muscat, Lloyds Bank TSB and Union National Bank joining as Senior Lead Arrangers, Abu Dhabi Investment Company and United Arab Bank as Lead Arrangers and Bank of Baroda, Bank Sohar and First Gulf Bank as Arrangers.
"We are delighted to have been selected by Port of Fujairah to be the Mandated Lead Arranger for their debut syndicated loan financing. The proceeds of this facility will be utilized by the Port for a major infrastructure expansion which will benefit the Emirate for many years to come. The transaction was heavily oversubscribed in syndication, with banks recognizing the intrinsic merits of the expansion plan and the benefits that will flow from it; we thank the banks for their support. The completion of this syndication is a tribute to the Port and Government of Fujairah and we congratulate them on this success" said Peter Baltussen, CEO, CBD.
Captain Mousa Morad, General Manager, POF said "We are grateful to the support extended by our banking partners in the syndicate to enable us to continue with realising our growth objectives."
Established in 1984, POF is a wholly owned government entity. Its strategic location on the Eastern Seaboard of the UAE approximately 70 nautical miles from the strait of Hormuz has helped it gain international importance as a trade link between the Indian sub continent, the Far East, the Middle East and Europe. As a port and terminal operator, POF handles all types of business including bulk cargo, general cargo, oil and other commodities, as well as provides marine services generally.
About National Bank of Fujairah
National Bank of Fujairah started operations in 1984 in the Emirate of Fujairah. Its key shareholders include the Government of Fujairah (39%) and the Government of Dubai (10%). It is primarily a corporate bank with strong trade finance expertise, and rapidly growing businesses in Wealth Management and Commercial Banking. National Bank of Fujairah is currently deepening its product range by selectively expanding its retail banking services while continuing to build its core businesses. NBF's current branch network stands at 12.
NBF is listed on the Abu Dhabi Securities Market under the symbol "NBF".