APICORP signs $93 million medium-term loan agreement with AMPTC
The Arab Petroleum Investments Corporation (APICORP), a multilateral bank owned by the ten member states of the Organization of Arab Petroleum Exporting Countries (OAPEC), today announced the signing of a USD 93 million medium-term loan agreement in favour of Arab Maritime Petroleum Transport Company (AMPTC). The proceeds of the loan will be utilized to partly finance AMPTC's acquisition of two Aframax oil product tankers.
APICORP is one of the joint mandated arrangers of the loan along with Credit Agricole Corporate and Investment Banking (CACIB), while Gulf International Bank (GIB) is the Arranger of the transaction.
The loan agreement was signed by Mr. Sultan Khalifa Al-benaali, Vice Chairman of AMPTC, Ahmad bin Hamad Al-Nuaimi, Chief Executive and General Manager of APICORP, Mr. Stéphane Pattonieri, Director Corporate and Investment Banking, Crédit Agricole, and Mr. Udit Mishra, Vice President, GIB.
Al-Nuaimi said: "APICORP follows a judicious but positive financing strategy towards working with our distinguished partners such as AMPTC who have a long-term investment policy, and are recognized for their professionalism and financial strength. APICORP finances assets with a strong business rationale whose risks can be mastered. We structure the financing to enhance the economic value and the strategic need of our partners. Despite today's difficult financing conditions, over the last few months, we have participated in financing transactions in the petroleum and petrochemical sector with a total value of US$ 9 billion, with APICORP's commitments approximating US$ 213 million."
AMPTC mandated APICORP and CACIB in early September to arrange the financing facility for the two oil product tankers on a fully committed basis, which was followed by AMPTC's signing of shipbuilding contracts with Hyundai Heavy Industries Co. Ltd. The two tankers will be delivered by Hyundai in July 2012 and March 2013.
Established in 1973 by the OAPEC, AMPTC provides shipping services for hydrocarbon derivatives, primarily for the benefit of OAPEC member states. As of May 2010, AMPTC owned four crude oil tankers, three oil products tankers and four liquefied petroleum gas (LPG) carriers.
Both APICORP and GIB have been involved in previous financings for AMPTC.
- Tourism is the real target of the Tunisia attacks: industry set to suffer
- FIFA scandal probe: No deaths in 2022 World Cup construction, Qatar says
- The UAE harnesses the power of celebrity endorsements
- Gazans reach beyond Israeli blockade through start-up
- France is playing a risky dating game in the Gulf: experts