Senaat unit raises $185m for manufacturing, sales
ABU DHABI, February 23, 2016
UAE-based Al Gharbia Pipe Company (AGPC), a unit of Senaat, has signed loan agreement with a consortium of Japanese and Emirati banks totalling $185 million to finance its manufacturing and sales business.
The loan will finance the production and sales of large diameter, high-quality sour grade steel pipes for oil and gas pipelines by AGPC, with a production capacity of up to 240,000 tonnes per year.
The co-financiers are the Japan Bank for International Cooperation (JBIC), which has committed $111 million of total funds. Sumitomo Mitsui Banking Corporation (SMBC), Mizuho Bank (Mizuho) and National Bank of Abu Dhabi (NBAD) also participated bringing the total co-financing amount to $185 million. SMBC acted as financial advisor on this transaction.
The underlying pricing of the transaction represents one of the lowest costs of financing Senaat has ever achieved. The transaction is expected to provide AGPC with stable financing for at least the next 10 years. The transaction represents the first time JBIC has provided direct funding to an industrial project in Abu Dhabi.
Jamal Salem Al Dhaheri, acting CEO of Senaat, said: “This loan agreement represents a major milestone in the journey of the Al Gharbia Pipe Company. This multi-sponsor and multi-tranche deal represents Senaat’s lowest ever cost of funding, and is one of the most competitive financing schemes within Abu Dhabi’s industrial sector.”
“In addition to providing capital, this loan from JBIC, SMBC, Mizuho Bank of Japan and NBAD is a major show of confidence in our vision from both national and international partners. I would like to thank our financial partners, as well as our valued joint venture partners - JFE Steel Corporation and Marubeni-Itochu Steel Inc.
“The Al Gharbia Pipe Company represents a huge opportunity to enhance the UAE’s position as a steel producer as part of the government’s 2030 economic vision, and we look forward to what the future holds for Al Gharbia Pipe Company and the entire Senaat portfolio,” he added.- TradeArabia News Service
