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GDI closes QR1.57bn credit facility with 3 banks

DOHA: Gulf Drilling Intern-ational Ltd ( GDI ) yesterday announced that it has closed a new QR1.57bn ($430m) credit facility with a syndicate of three banks.

The Mandated Lead Arrangers of the credit facility are Qatar National Bank SAQ ( QNB ) , Samba Financial Group ( Samba ), and International Bank of Qatar QSC ( IBQ ) while QNB is also the Facility Agent and Security Agent.

The new credit facility, which has a term of ten years and four months, will be used to finance a projected QR1.96bn ($538m) business expansion plan that includes the construction of two new hi-spec premium jack-up rigs, two new land rigs and the acquisition of a jack-up accommodation barge. In combination with its existing fleet, which includes five jack-up rigs and four land rigs all operating in the State of Qatar, GDI is set to become the dominant drilling contractor in Qatar. The jack-up accommodation barge will also mark GDI 's first entry into the accommodation barge market.

Saad Sherida Al Kaabi, Chairman of GDI , said: "These new investments will nearly double the value of GDI 's existing assets. This will help GDI pursue its strategic plans, to increase its share of Qatar's drilling market and to diversify into complimentary lines of business. It is encouraging to see such strong participation coming from Qatari and GCC banks, as supporting our local banks is a priority."

Ibrahim J Al Othman, the Chief Executive Officer of GDI , said the company is pleased to have assembled such a strong group of bankers, which underscores the strength of GDI 's financial backing. " GDI is grateful to have QNB serves as the Facility Agent and Security Agent as they are most familiar with our operations, having served in similar capacities for two other syndicated loans and are the sole provider of two additional loans to GDI . At the same time, GDI welcomes the addition of two new banks, Samba and IBQ , who have not had prior relations with GDI , but have targeted GDI as a worthy client for their portfolio."

Ali Shareef Al Emadi, the QNB Group Chief Executive Officer, expressed his delight to have been mandated to arrange this three bank club facility. "This is in line with our objectives to support business development and growth in the country and the region," he said.

He added that QNB is honored to be the Facility Agent and Security Agent and to act as one of the Mandated Lead Arrangers in successfully arranging this milestone transaction for GDI . "We have a long relationship with GDI and are in favor of continuously supporting the expansion of their lines of business and the achievement of their strategic plans," he said.

George Nasra, Managing Director of IBQ , said that GDI 's expansion plans will provide critical infrastructure for the further development of the oil and gas industry in Qatar. "Financing such strategic development plans is a key component of our strategy, particularly with the expected surge of developments in the country. We are proud to support such a successful company as GDI , which has a proven track record as a market leader in its field. Our participation in this consortium of banks underlines our strong commitment to be a notable partner in the growth plans of Qatar today," he said.

On the other hand, Nader Gadourah, General Manager of Samba Qatar, said: "As Mandated Lead Arranger, this is a landmark transaction marking a first step for Samba in what we hope will be a long lasting relationship with GDI ."

© The Peninsula 2011