(MENAFN- Emirates News Agency (WAM)) National Petroleum Construction Company, NPCC, a subsidiary of the General Holding Cooperation, SENAAT, has announced that it has secured a new syndicated facility of AED2.2 billion for eight years at very competitive interest rates which indicates the high confidence and the effective performance of the company in the financial markets.
Aqeel Madhi, CEO, said that NPCC will use about AED1.450 billion to finance the construction of new offshore barges, cargo barges and provision of modern facilities. The balance will be used to refinance loans of AED750 million that NPCC had previously obtained from three financial institutions which resulted in a saving of about AED25 million.
Mr. Madhi stated that NPCC has received competitive offers from local and international banks showing great interest, which resulted in obtaining favorable financing terms. Seven financial institutions provided the whole loan for a period of eight years, guaranteed by the company itself, which indicates the high confidence in the effective performance of the company in the local and global markets.
Mr. Madhi went on to say that due to the good operational and financial track records of the company, it has received competitive offers from local and international banks showing great interest, which resulted in obtaining a favorable financing terms. The withdrawal period is 18 months in which US$320 shall be withdrawn during 2015.
Mr. Madhi said that the facilities will contribute to the expansion and development of the company's operations. This will enhance the level of services that have managed to acquire a good share of petroleum projects market locally, regionally and globally, stressing that the company has ambitious expansion plans and enjoys a sound financial position with the expectation of entering new markets in the near future.
First Gulf Bank, the Lead Arranger, has professionally and efficiently managed the syndicated transaction.
Mabkhoot Al-Menhali, Chief Financial Officer, said that the conventional banks are Abu Dhabi Commercial Bank, First Gulf Bank, National Bank of Abu Dhabi and Union National Bank, while Islamic institutions are Abu Dhabi Islamic Bank, Al Hilal Bank and Dubai Islamic Bank. Law firm White and Case provided legal consultancy services to NPCC and Fresh Field provided legal advice to the participating banks.
Mabkhoot Al-Menhali added that the syndicated facilities secured from conventional banks amount to about AED1.470 billion and AED730 million comes from Islamic Banks, both to be repaid after eight years.
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