The National Bank of Abu Dhabi (NBAD) has signed a deal with UAE-based National Petroleum Construction Company (NPCC) to provide the company a $100 million financing for the construction of a new vessel.

NPCC is owned by the General Holding Corporation (GHC), which holds a 70 per cent stake in the company, while the Consolidated Contractors Group has the remaining 30 per cent.

Since 1973, NPCC’s dynamic growth, its past achievements and new facilities have transformed this national company into a major international Engineering, Procurement and Construction (EPC) contractor catering to the offshore and onshore oil & gas industry in the UAE, Gulf and India.

Waha Capital, the diversified holding company, played a key role in the transaction by providing financial advice to NPCC.

The proposed structure is on two-plus-five basis to fully finance a new Jack up Vessel (SEP 550) for the UAE firm. As per the deal, the bank will fund the entire cost of the construction for two years and will enter into a five-years bilateral finance with NPCC.

The agreement was signed at NBAD office by Aqeel A. Madhi, the chief executive officer of NPCC and Mark Yassin, the senior general manager, Global Banking at NBAD

“This latest transaction will go a long way in furthering the long standing relationship between NBAD and NPCC,” said Yassin. “Abu Dhabi continues to invest in developing world class infrastructure and NBAD, as the premier bank of the UAE, is committed to promoting economic activity in the UAE and to provide all possible support and assistance to the economic development of the UAE,” he added.

According to NPCC, the vessel (weighing up to 150 tons) will be used for the installation and maintenance activities in oil and gas fields and for laying offshore pipelines. The vessel is under construction and will be delivered next year.

Madhi lauded the efforts of NBAD and its constructive co-operation in providing the financing facilities to build a new barge joining the company fleet as part of NPCC strategic plans for geographical expansion in the offshore industry.

“We are keen to explore this avenue further in future opportunities of this nature,” he added.-TradeArabia News Service