National Bank of Fujairah and Wells Fargo strengthens partnership with USD 25 million bilateral deal
Two-year facility to boost trade finance capabilities and underscores market confidence in Bank’s financials
The National Bank of Fujairah has signed a bilateral trade finance facility for USD 25 million with Wells Fargo Bank, N.A. The facility has a two-year tenor and will support National Bank of Fujairah's trade business growth.
The facility will also strengthen existing ties between the two leading financial services institutions, first initiated in 2000 with Wachovia, which has since become a part of Wells Fargo. National Bank of Fujairah routinely uses Wells Fargo's branch network for its trade business, and in 2008, arranged a closed syndication deal of which Wells Fargo was a part. A total of 12 banks participated in this three-year facility arranged and marketed by the National Bank of Fujairah, and the transaction was oversubscribed by 40 percent.
Vince Cook, Chief Executive of National Bank of Fujairah, said that the loan reflects the ongoing confidence of the Bank's counterparties in its strong financial position and the underlying growth in its trade finance business; on 27 Jan, National Bank of Fujairah announced a net profit of AED 170.9 million for 2010, up 64 percent from the year before.
"This transaction is a reflection of the trust that we inspire in our partners, such that top-tier multinational banks like Wells Fargo are confident of entering such transactions with us despite prevailing market conditions. On that same token, we are happy to use such facilities to strengthen our trade financing capabilities so as to better serve our clients across the UAE.
"This transaction further cements the close ties enjoyed by our two institutions. We are grateful for the support extended by Wells Fargo and look forward to further collaboration in the future."
Chuck Silverman, Wells Fargo's Global Head of Financial Institutions, said: "As one of the leading banks in the United States with operations across the world, Wells Fargo is constantly looking to make further inroads into the international financial markets. We are pleased to have a market leader like National Bank of Fujairah as our partner in the region and are confident that this trade finance facility is the start of a period of growth in this area."
About National Bank of Fujairah PSC:
Incorporated in 1982, the National Bank of Fujairah (NBF) is a full services corporate bank with strong wholesale banking and trade finance expertise. Leveraging its deep banking experience and market insight within Fujairah and the UAE, NBF is well-positioned to build lasting relationships with its clients and help them achieve their business goals.
NBF's key shareholders include the Government of Fujairah, the Government of Dubai and business pioneer and community leader H.E. Sir Easa Saleh Al Gurg. It is listed on the Abu Dhabi Securities Market under the symbol "NBF" and has a branch network of 12 across the UAE.