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Port of Fujairah raises US$260 million to realise infrastructure plans
Source: BI-ME , Author: Moussa Ahmad
Posted: Mon September 8, 2008 12:00 am

UAE. Port of Fujairah (POF), the Fujairah based port and terminal operator and the second largest bunkering location worldwide, has signed an agreement to raise AED900 million (US$257 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 and Commercial Bank of Dubai as the Mandated Lead Arranger, was fully underwritten by both banks and was heavily oversubscribed allowing the borrower to increase the facility size towards pre-defined capital expenditure.

The growth of the Port of Fujairah, 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 Port of Fujairah. We have clearly defined our expansion plans and their objectives, which will benefit not only the port but also the commercial support services in Fujairah and the rest of the UAE,” said HH Sheikh Saleh Bin Mohammed Al Sharqi, Chairman of Port of Fujairah and the Department of Industry and Economy, government of Fujairah.

"National Bank of Fujairah is extremely pleased to have been at the forefront for arranging the Port of Fujairah's debut financing facility and to have successfully closed this syndication," said Steve Mullins, CEO of the National Bank of Fujairah. 

"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 the Port of Fujairah 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 the port."

The syndication had a total of 13 banks participating, with Abu Dhabi Commercial Bank, Arab African International Bank, Arab Bank, 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," said Peter Baltussen CEO of the Commercial Bank of Dubai.

"The proceeds of this facility will be utilised 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 recognising 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.”

Captain Mousa Morad, General Manager of the Port of Fujairah, 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, the Port of Fujairah 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 Subcontinent, the Far East, the Middle East and Europe. The Port of Fujairah handles all types of business including bulk cargo, general cargo, oil and other commodities, as well as providing marine services.

 

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