Abu Dhabi, UAE — Abu Dhabi Islamic Bank (ADIB) has closed a sharia compliant syndicated transaction totaling AED865 million ($235 million) for BGN and Al Seer Marine to finance new and energy-efficient gas carriers.
This financing marks the second tranche of a larger syndication amounting to US$370 million, which will be used to finance the construction of three state-of-the-art Very Large Gas Carriers (VLGCs) in South Korea and Japan.
ADIB acted as the Mandated Lead Arranger, Coordinator, Bookrunner, Shariah Advisor, Investment and Security Agent on the deal, and was supported by several mandated arrangers specialized in the maritime and energy sectors.
The financing, conducted through ABGC, a joint venture between energy and commodities trader BGN and Al Seer Marine, will facilitate the construction of three new energy-efficient VLGCs, with two vessels slated for delivery in 2025 and the third vessel expected in 2026.
The vessels will be dual-fuel efficient and 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.
Mohammed Ali AlFahim, Acting Global Head of Wholesale Banking at ADIB, commented, “The completion of these VLGC vessels will not only enhance the UAE’s maritime position but also contribute to the nation’s role as a critical maritime hub on the global stage and will contribute to decarbonization efforts in the marine industry.”
Ozan Turgut, Head of Shipping at BGN, emphasised the trader’s long-term commitment to developing and maintaining a modern fleet to support its global physical trading platform. “
We are growing our logistics capability to create much-needed capacity for our traders who continue to supply the world with transitional fuels such as LPG (liquefied petroleum gas), ammonia and other commodities. We are proud to have collaborated closely with Al Seer Marine, our banking partners in the GCC region, and legal partners Dentons and HFW to bring this syndicate to completion. This collaboration highlights the power of partnership in achieving complex financial arrangements and reflects the UAE’s pivotal role as an energy, maritime, and financing hub.”