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Capital Bank leads syndicated loan to fund Aqaba container terminal expansion project  Join our daily free Newsletter

MENAFN Press - 04/08/2010

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(MENAFN Press) Capital Bank announced the signing of a JD56.8M, 8-year syndicated loan agreement with the Aqaba Container Terminal (ACT) to fund part of the cost of the terminal expansion project. The loan was arranged by Capital Investments, the investment arm of Capital Bank, while Capital Bank is leading the syndicate which comprises the Social Security Investment Fund, Cairo Amman Bank and Jordan Kuwait Bank.

The project will be implemented in accordance with the action plan set by APM Terminals, which is responsible for the development, management and operation of the terminal, and involves the extension of the terminals quay from 540m to 1km, in addition to investments in container handling and transportation equipment to increase the terminals throughput capacity.

Commenting on the transaction, Mr. Haytham Kamhiyah, General Manager of Capital Bank, said: Our partnership with ACT is in line with our commitment to providing premium financial services on both the individual and corporate levels. This agreement embodies our keen interest in offering project financing services by arranging and leading syndicated loans, through which we strive to cater to the needs of various economic sectors and support the implementation of large-scale investment projects that benefit the national economy.

Mr. Omar Al-Wir, CEO of Capital Investments, added: Our role in this transaction reflects our understanding of the importance of expanding the terminals capacity, which is the Kingdoms primary access to the international shipping lanes of the Red Sea and beyond, while also underscoring our commitment to contributing to the growth and development of the Jordanian economy.

The berth expansion efforts are already underway, and the utilization of the loan will begin during the next few months, said Mr. Klaus Laursen, CEO of ACT. This project, which is scheduled to be completed within three years, comes to reaffirm our commitment to bolstering the operational capacity of the Aqaba port. The signing of this agreement also reflects our desire to contribute to Jordans long-term economic prosperity and to support sustainable development in the Kingdom.

Mr. Laursen also thanked Capital Investments and all the participating financial institutions for their involvement in this project, stressing that their contribution will greatly facilitate the completion of a significant portion of the terminal expansion plans. He also commended Capital Investments for its leading role in promoting investment in Jordan and providing a comprehensive range of financial and investment solutions to its clients.

About Capital Bank
Capital Bank has been steadily expanding its operations since its inception in 1995, positioning itself today as the third largest bank in the Kingdom in terms of authorized capital, which amounts to JOD 150 million / shares. The bank's capital ratio exceeds the Basel Committee's and the Central Bank of Jordan's requirements and its operational efficiency is considered to be one of the best in the market. Distinctly characterized by its financial stability, Capital Bank achieved the second highest level of growth in deposits for 2009, which grew by 28% reaching JOD 680 million in comparison to 593 million in 2008. In addition, the bank boasts a high liquidity ratio to the Jordanian Dinar, which amounts to 151% compared to the 70% requirement of the Central Bank of Jordan. The bank also achieved high asset growth, which exceeded the JOD 1 billion mark at the end of 2009 in comparison to JD984 million in 2008, recording a 9% growth. Capital Bank's ambitious and highly-qualified human resources and management team have achieved several successes that have yielded exceptional results in several fields, one of which is that it received a BBB credit rating by Capital Intelligence according to its January 2010 report. About Capital InvestmentsCapital Investments is a wholly-owned subsidiary of Capital Bank with a paid-up capital of JD 10 million (USD 14 million). As Capital Banks investment arm, Capital Investments provides its clients with specialized investment banking and financial services such as financial market reports and analysis, securities brokerage, investment portfolio management, financial structuring of ventures, IPO management and arranging corporate bond issues and syndicated loans. About Aqaba Container Terminal (ACT) ACT is a joint venture between Aqaba Development Corporation (ADC) which is the Jordanian Government's central development vehicle for the Aqaba Special Economic Zone (ASEZ) and APM Terminals one of the world's leading container terminal operators. After signing a Terminal Management Contract with ADC in 2004, APM Terminals took over the management and operation of the terminal. A further 25year Joint Development Agreement (JDA) was signed between ADC and the ACT in 2006. The joint venture represents the first Public Private Partnership (PPP) initiative launched by ADC as part of its program to rehabilitate and expand port terminals of Aqaba and wider logistics and transport infrastructure within ASEZ.Tel: 962 6 5692008/9Fax: 962 6 5692007P.O. Box: 930391, Amman 11193, Jordan


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