UAB closes $120 million credit facility syndicate for Aegean
United Arab Bank seeks to pursue further syndicate lead roles in the region.
Dubai - The new facility will be used by Aegean to refinance an existing credit facility.
United Arab Bank announced on Monday the closing of $120 million credit facility for Aegean Oil Terminal Corporation, a subsidiary of Aegean Marine Petroleum Network, or Ampni.
In a statement, the Sharjah-based lender said the credit facility marked the first syndicate lead for UAB as it seeks to pursue further syndicate lead roles in the region. The new facility will be used by Aegean to refinance an existing credit facility, with the balance to be used to pursue Aegean's strategy of selling blended products to generate greater profitability. The initial syndicate members were Abu Dhabi Commercial Bank, Commercial Bank of Dubai, National Bank of Oman, in addition to UAB in its role as syndicate lead.
Samer Tamimi, acting CEO at UAB, said the bank has been supporting its clients in the UAE for the past 40 years. "We will continue to build on our established client relationships in the future. We are committed to the UAE market where we see promising opportunities to lead syndications on behalf of our clients in the country and across the region."
Tamimi said the deal demonstrated the strength of the relationship between participating banks. "As we seek further syndicates in the region, we will increasingly form relationships with leading banks in the UAE and the region, to collectively facilitate strategic financing solutions for our clients."
Julio de Quesada, chief business officer at UAB, said the bank's ability to lead and market a $120 million syndicated facility for Aegean is a testament to the value it delivers to corporate clients. Aegean will now be able to refinance its oil terminal facilities in Fujairah.
"UAB was able to attract strong interest from participating banks for Aegean, being an NYSE-listed company, with a sound track-record of financial performance and for being a significant subsidiary of AMPNI, one of the largest independent fuel suppliers in the world," he said.
E. Nikolas Tavlarios, president of Ampni, said the bank's support would help drive the company's growth plans in the region.