Abu Dhabi Islamic Bank (ADIB) has announced the closure of a $235 million (AED 865 million) Shari’ah-compliant syndicated loan for BGN and Al Seer Marine to finance new and energy-efficient gas carriers.
The financing marks the second tranche of a larger syndication amounting to $370 million, which will be used to finance the construction of three Very Large Gas Carriers (VLGCs) in South Korea and Japan.
ADIB acted as the lead arranger, coordinator, bookrunner, Shari’ah advisor, and investment and security agent on the deal.
“We are delighted to lead this syndication, which underscores our commitment to supporting strategic initiatives that promote sustainable development and innovation in the maritime sector,” said Mohammed Ali AlFahim, Acting Global Head of Wholesale Banking at ADIB.
“The completion of these VLGC vessels will not only enhance the UAE’s maritime position but also contribute to the nation’s role as a critical maritime hub on the global stage and will contribute to decarbonisation efforts in the marine industry.”
The deal had several mandated arrangers specialised in the maritime and energy sectors including Abu Dhabi Commercial Bank, National Bank of Fujairah, Commercial Bank of Dubai and the Islamic Corporation for the Development of the Private Sector.
The financing, conducted through ABGC, a joint venture between energy and commodities trader BGN and Al Seer Marine, will facilitate the construction of three new energy-efficient VLGCs, with two vessels slated for delivery in 2025 and the third vessel expected in 2026.
The vessels will be dual-fuel efficient and enjoy operational, economic and environmental efficiencies through their LPG engines. LPG engine technology is a step towards zero-carbon propulsion of vessels and the shipping industry achieving its ambitious greenhouse gas emission reduction goals.
