ADIB arranges US $420 million financing for Zakher Marine International

Abu Dhabi Islamic Bank (ADIB), a top-tier Islamic financial services institution, has signed an agreement with Zakher Marine International Inc. to arrange a US $420 million (AED 1.55 billion) financing for its new ship-building program including 15 vessels and 3 self-elevating accommodation barges through one of its group companies (QMS Holding Ltd.). ADIB was the Sole Book-runner and initial Mandated lead Arranger. The deal was 2 times oversubscribed by banks including ADCB, Al-Hilal Bank, MashreqBank, Ajman Bank, Arab Bank, National Bank of Fujairah and Noor Bank. 

Zakher Marine International, which was established in Abu Dhabi in 1984, provides services to the offshore oil and gas industries and offshore marine construction companies and currently owns and operates over 35 offshore support vessels in addition to managing and operating 10 vessels including providing accommodation barges support services. 

Arif Usmani, ‎Global Head of Wholesale Banking at ADIB commented "ADIB has a strong track record in providing marine financing facility. The facility structure was carefully designed to meet Zakher’s financing needs and has received significant interest by the regional banking market. We are stepping up our corporate financing activity, with a particular focus on growing companies like Zakher Marine that are playing a positive role in the UAE’s economic development." 

Musadaq Yacoub, CEO of Zakher Marine commented: “We remain committed to the UAE market and this facility will allow us to bring technologically advanced and larger size vessels to Abu Dhabi, the regional and international markets which will maximize service efficiency and effectiveness for the offshore oil services industry, something we believe is key for the company to remain competitive and meet the needs of its clients." 

Ramzi Al-Sewaidi, Manager of Strategic Projects at Zakher commented: “The facility is well structured to meet the company's future business requirements while being flexible at the same time to allow the company to remain competitive during its upcoming growth period. The financing that we were seeking was well supported by the banks we approached, and we are particularly grateful to ADIB for their efficient response and professionalism." 

ADIB established a Specialized Financing Unit in 2013 to focus on structured shipping, marine and other asset finance classes, with a view to the establishment of regional market leadership in regard to this type of financing and in order to build on opportunities presented by the Bank’s strong balance sheet / liquidity position. The bank was recently named winner of the “Seatrade Maritime Finance for Shipping Award” which recognises the achievements and exceptional contributions made by institutions to the region’s maritime and shipping industry. 

In the last 2 years, ADIB through its specialized finance unit, has structured and arranged various  syndicated facilities for shipping / offshore clients across various sectors ranging from tankers to offshore supply and specialist subsea construction vessels. Other landmark marine transactions include GMS, NPCC, Maridive and Akron.