Gulf Petrochem raises $150 million financing

dubai - It will tap Islamic finance markets for future funding

Gulf Petrochem Group, a leading UAE player in the oil industry, announced on Monday that it had raised $150 million financing from GCC financial institutions and said it would tap Islamic finance markets for future funding.

The company said the financing raised through a group of Gulf-based international and local financial institutions would be used to support the group's activities around the world "in an environment of continued low global oil prices."

The borrowing will take the form of an eight-year term loan that was provided by a syndicate of banks lead by Emirates NBD. IL&FS acted as the financial advisor, said the Sharjah-based company that specialises in oil trading and bunkering, oil refining, grease manufacturing, oil storage terminals, bitumen manufacturing and shipping and logistics.

National Bank of Fujairah will be the security agent for the financing. The participating banks are Al Ahli Bank of Kuwait, United Arab Bank, Bank of China, ICICI Bank, Mashreq Bank amongst others.

The loan was competitively priced with a spread over the London Interbank Offered Rate. Throughout the planning and syndication phases, GP worked closely with its stakeholders, IL&FS and the syndicate of banks.

- issacjohn@khaleejtimes.com