- The facility will be used to finance construction of two state-of-the-art Gas Carriers (VLGCs) with a capacity of 86,000 cubic meters
- The vessels will be constructed by Hyundai Heavy Industries for ABGC DMCC (‘ABGC’), the joint-venture firm of Al Seer Marine PJSC and BGN International DMCC (BGN)
Abu Dhabi: Abu Dhabi Islamic Bank (ADIB), a leading financial institution, has arranged and structured a Sharia’a-compliant transaction of AED 495 million for ABGC DMCC, a joint venture between Al Seer Marine and BGN, for the construction of two Very Large Gas Carriers (VLGCs). The transaction represents ABGC’s first Sharia based financing employing a ‘Istisna-Ijarah’ structure as well as ADIB's ongoing commitment and ability to finance significant assets in the marine and energy sectors.
ADIB acted as the Mandated Lead Arranger and Bookrunner on the deal, with Commercial Bank of Dubai and National Bank of Fujairah as Mandated Lead Arrangers. The vessels will be constructed by Hyundai Heavy Industries for ABGC DMCC.
Construction began in March 2022 on the first vessel, Lucky Gas, and will be followed by the second vessel in May 2022. The vessels will be dual-fuel efficient, and will enjoy operational, economic and environmental efficiencies through their Liquefied Petroleum Gas (LPG) engines. LPG engine technology is a step towards zero-carbon propulsion of vessels and the shipping industry achieving its ambitious greenhouse gas emission reduction goals.
This is another landmark financing for the shipping industry arranged by ADIB demonstrating the Bank’s expertise and ability to finance significant assets in the marine and energy sectors. In line with our desire to promote and encourage environmentally-friendly projects, the fuel-efficient vessels will contribute to decarbonization efforts in the marine industry. With the current fluctuation of oil prices, LPG technology will be a benefit to the marine industry.
Gunther Alvarado, Chief Operating Officer of Al Seer Marine, said: “We are delighted to work together with ADIB and collaborate on achieving the completion of this financing. We are aiming to increase our fleet by acquiring a further 15 ships this year and having demonstrated consistent success in executing on attractive opportunities, we will seek out the right structure and financing to ensure the best equity returns for our shareholders, all the while managing the associated risk.”
Dentons acted as lead legal counsel to ADIB on the deal, with Holman Fenwick Willan (HFW) as legal counsel to the joint venture.
ADIB has a long track record of delivering several award-winning transactions for high profile Corporate and Institutional customers from across the region. In 2021, ADIB concluded a number of high-profile transactions across structured and syndicated finance, Sukuk, M&A and advisory products.
ADIB is a leading Islamic bank with more than AED 133 billion in assets that was established in 1997 with its shares traded on the Abu Dhabi Securities Exchange (ADX). Over 1 million customers benefit from its large distribution network of 70 branches and more than 500 ATMs. The bank also offers world-class online, mobile and phone banking services, providing clients with seamless digital access to their accounts 24 hours a day. ADIB provides retail, corporate, business, private banking and wealth management solutions. ADIB remains one of the leading banks in the recruitment, development and promotion of local talent. The bank has one of the highest Emiratisation ratios with more than 40 percent of the bank’s workforce being UAE Nationals. ADIB has presence in six strategic markets: Egypt, where it has 70 branches, the Kingdom of Saudi Arabia, the United Kingdom, Sudan, Iraq and Qatar.
Named “Best Islamic Bank globally” by The Financial Times’ The Banker publication and Best Bank in the UAE by Forbes, ADIB has a rich track record of innovation, including introducing the world’s first digital Islamic bank for youth and being the first bank in the UAE to enable account opening through facial recognition.
For more information, please visit www.adib.ae or contact:
Lamia Khaled Hariz Simon Hailes
Head of Public Affairs Director of Financial Communications