ADPC & NBAD sign AED 1.1 billion financing agreement
Abu Dhabi Ports Company (ADPC) and National Bank of Abu Dhabi (NBAD), The Number One Bank in the UAE, signed an AED 1.1 billion financing agreement to meet the initial construction costs of the Khalifa Port. This transaction will be ADPC’s maiden debt financing transaction and will be in the nature of a revolving credit facility for a period of one year.
ADPC is the master developer of the multi-billion dollar Khalifa Port and Industrial Zone (KPIZ) – located between the cities of Abu Dhabi and Dubai. ADPC is in the process of structuring long term project finance facilities. The NBAD financing will enable the company to meet the immediate project development expenses of the first phase of Khalifa Port’s construction which is expected to be completed by end of 2010. ADPC is currently evaluating different finance facilities that may include Islamic as well as conventional debt structures.
KPIZ is a multi-purpose facility that involves the construction of a world-class container and industrial port in addition to the development of over 100 square kilometers of industrial, logistics, commercial, educational, and residential special economic and free zones. KPIZ will play a major role in Abu Dhabi’s industrial and economic diversification in serving as a key hub for large scale industrial investments that will be serviced by state-of-the-art port, transport and other infrastructure facilities and services.
Mr. Ahmed Al Calily, CEO and Managing Director of ADPC said: “We are keen on selecting only the best in class partners for our development. We are very pleased to be cooperating on our first credit facility with NBAD, a highly reputable bank with strong track record”.
Mr. Michael Tomalin, NBAD’s chief executive said: “NBAD is proud to play a major role in ADPC’s continued growth by financing the first phase of the Khalifa Port, which will be one of the region’s largest industrial and commercial ports”.
“This agreement comes to reflect that NBAD is well positioned to take advantage of the huge growth opportunities in Abu Dhabi and its firm commitment to play a significant part in the economic development of the UAE”. “It also reflects NBAD’s strong relationships and cooperation with leading local and regional companies such as Abu Dhabi Ports Company (ADPC)” Mr. Tomalin added.
Mr. Abdulla Bin Khalaf Al Otaiba, head of corporate banking group & deputy general manager of domestic banking department, NBAD said: “we are extremely pleased to play a significant role in financing this multi purpose world-class port and industrial zone. NBAD continues its objectives to support the development of the country for which the world-class ports are inevitable”.
“NBAD’s outstanding loans for the transport sector increased to AED 2.46 billion in 2006 compared to AED 1.77 billion in 2005 while outstanding loans for the manufacturing sector increased to AED 2.65 billion in 2006 compared to AED 2.07 billion in 2005. This shows “The Number One Bank in the UAE” strives to keep pace with the development of the country and finance various sectors to play a vital role in the diversification of the UAE economy under the wise leadership of the President H.H. Sheikh Khalifa Bin Zayed Al Nahyan and General Sheikh Mohammed Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces” Al Otaiba concluded.
The singing ceremony took place in ADPC offices in the presence of Mr. Ahmed Al Calily, ADPC’s CEO and Managing Director; Jamal Al- Ramahi, Finance Director; Ashraf Al Khaznadar, Director of Capital Projects, and Alan Teh, The Finance Manager. From NBAD, the attendees were Mr. Michael H. Tomalin, Chief Executive; Mr. Abdulla Bin Khalaf Al Otaiba, Head of Corporate Banking Group & Deputy General Manager of Domestic Banking Department; Mr. Abdulla Al Sakeb – Deputy Head of Corporate Banking Group.
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