Mashreq, FGB ink $403m Borouge finance deal
Abu Dhabi, February 22, 2011
UAE-based banks Mashreq and First Gulf Bank (FGB) have successfully co-ordinated a $403 million syndicated facility to fund the engineering, construction and procurement works of the Borouge 3 expansion project.
One of the leading UAE financial institutions, Mashreq said the Borouge 3 expansion contract was awarded to the Tecnimont (Maire Tecnimont Group) - Samsung Engineering joint venture.
Mashreq successfully led this deal as the co-ordinator of this facility while FGB acted as the facility agent and the Issuing Bank, said a statement from Mashreq.
A joint venture between Abu Dhabi National Oil Company (Adnoc), one of the world’s major oil and gas companies, and Austria-based Borealis; Borouge is a groundbreaking international partnership at the forefront of the next generation of plastics innovation.
The $1.65 billion Borouge 3 expansion project comprises two turnkey projects owned by Abu Dhabi Polymers and is expected to be completed by the first quarter of 2014.
Commenting on deal, Karim Mahmoud, co-head, Corporate Investment Banking Group, Mashreq said: “Joining forces with Tecnimont, Samsung Engineering and FGB to successfully issue the bond requirements of the Borouge 3 expansion project is our contribution to encouraging the Contracting Finance and Energy sector in this region.'
'In the past, Mashreq has demonstrated its ability to manage and structure a financing facility that is attractive for its clients and we are delighted to take this legacy forward with our esteemed partners involved in this project,' he stated.
'The participation of Deutsche Bank to the facility also demonstrates the strategic importance and commitment of banks for similar sizeable GCC projects,' Mahmoud added.-TradeArabia News Service