(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.