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Global Environmental Management Services signs $80m facility

DUBAI, October 26, 2016

Global Environmental Management Services (GEMS), a Saudi Arabia-based integrated waste management and recycling company, has concluded an SR300 million ($80 million) capital expenditure and working capital facility structured in the Murabaha format.

Arab Petroleum Investments Corporation (Apicorp) and Emirates NBD Capital Limited, part of Emirates NBD, acted as mandated lead arrangers and joint coordinators for the facility.

Apicorp is also the structuring bank and investment and security agent and Emirates NBD KSA is the account bank. The Dubai teams of Linklaters and Freshfields Bruckhaus Deringer acted respectively as lenders’ and borrower’s legal counsel.

Headquartered in Jeddah, GEMS is a market leading provider of integrated waste management services, industrial and engineering services, by-product processing, logistics and transportation management. The company provides a vital service in the recycling and environmentally responsible disposal of hazardous and complex waste, including toxic hydrocarbon waste, in an area requiring high technological capability.

The financing will be utilised to fund the expansion of GEMS in Saudi Arabia as well as satisfy its working capital requirements. The facilities have capital expenditure and working capital tranches with final maturities of six years from the signing date, said the company.

“Today’s announcement demonstrates the strong commitment from leading financial institutions to support our exciting growth trajectory,” said Wally Dahya, managing director, GEMS. “This agreement provides GEMS with an opportunity to continue our ambitious expansion plans in Saudi Arabia and create long-term value for our stakeholders. We are grateful to Apicorp and Emirates NBD for the support and confidence in GEMS and our management team.”

Dr Raed Al Rayes, deputy CEO, Apicorp, said: “Although this transaction is not considered large in terms of size, we still view it as important and strategic in nature.  It highlights Apicorp's structuring capabilities and demonstrates our commitment to support the private sector.  But what makes it special, is that we will contribute to a more environmentally sustainable hydrocarbon industry.”

Ahmed Al Qassim, CEO, Emirates NBD Capital, added: “We are pleased to have concluded this landmark transaction for Global Environmental Management Services. This transaction goes a long way in demonstrating our commitment to the various sectors of the KSA economy and eagerness to be part of the growth story. We value our relationship with Global Environmental Management Services LLC and its investors, and we look forward to future opportunities to deepen our relationship at all levels.” - TradeArabia News Service




Tags: GEMS | Waste Management | ENBD |

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