Dubai, 15 December 2004. Emirates Bank has announced the successful conclusion of a USD 63 Million term facility to finance construction and purchase of two oil/chemical tanker ships by Dubai based Gulf Energy Maritime pjsc.
The facility was signed by Capt. Jim Hayer, Chief Operating Office of GEM and Mr. Rajan Khetarpal, Head of Emirates Bank Dubai Main Branch Corporate Banking Unit. Also attending were Mr. Harry Theochari - Global Head of Shipping, Norton Rose, London, Mr. Abdulwahed Al Sayyah, Asst GM, Emirates Bank, , Mr. Sharad Upadhyaya, Senior Relationship Manager, Emirates Bank, Mr. Brian Smith, Head of Fleet of GEM, Mr. Zafar Rizvi, Chief Financial Officer of GEM and other senior officials.
"Emirates Bank is committed to supporting sound economically viable asset backed transactions. Low risk transactions of this nature are becoming even more competitive in view of the expected phasing in of the Basel II guidelines for capital adequacy. We are very pleased to be mandated ahead of several other banks for this financing" said Mr. Rajan Khetarpal of Emirates Bank.
The loan will help Gulf Energy expand its fleet size in line with it strategy to become a major regional shipping business said Captain Jim Hayer of GEM pjsc. "This facility allows GEM to take advantage of the depth in the local bank market and provides us flexibility as we evaluate the most effective strategies to enhance value for our shareholders" he said.
These tanker ships are part of a wider order recently placed by GEM on Hyundai Mipo Dockyard in Korea. The tankers will be double hulled in compliance with the latest IMO regulations and will also be fitted with Nitrogen generators to allow transportation of chemicals.
According to Mr. Sharad Upadhyaya, the terms of this transaction have been structured in line with international shipping norms. Legal advise was provided by Norton Rose, London who are very highly regarded in the shipping industry worldwide. This deal reinforces Emirates Bank leadership at the top end of the corporate credit market in terms of deal size and quality in Dubai, he said.
Captain Jim Hayer, reported overwhelming interest from local and major international banks to finance GEM's ongoing order book. We are pleased to mandate one of our lead relationship banks this year for this much sought after transaction. With EBI's expertise we are in a good position to source funding to support our fleet expansion, business operation and maintain sustainable growth, he stated.
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About Emirates Bank psc:
The flagship of the Emirates Bank Group, Emirates Bank has emerged as one of the foremost financial institutions in the region. Euromoney - Europe's leading banking, finance and capital markets magazine - ranked Emirates Bank as the "Best Bank in the UAE" in 2004.
About Gulf Energy Maritime pjsc.
Incorporated in mid 2004, GEM pjsc already has a fleet of eleven modern tankers including those on order. With regional government ownership it is well positioned to become a serious participant in the growing international market for shipping of petroleum and chemical products.
© Press Release 2004
