Abu Dhabi Islamic Bank (ADIB), a leading financial institution, has arranged and structured a Sharia’a-compliant transaction of AED 495 million for ABGC DMCC, a joint venture between Al Seer Marine and BGN, for the construction of two Very Large Gas Carriers (VLGCs).
The transaction represents ABGC’s first Sharia based financing employing a ‘Istisna-Ijarah’ structure as well as ADIB’s ongoing commitment and ability to finance significant assets in the marine and energy sectors.
ADIB acted as the Mandated Lead Arranger and Bookrunner on the deal, with Commercial Bank of Dubai and National Bank of Fujairah as Mandated Lead Arrangers. The vessels will be constructed by Hyundai Heavy Industries for ABGC DMCC.
Construction began in March 2022 on the first vessel, Lucky Gas, and will be followed by the second vessel in May 2022. The vessels will be dual-fuel efficient, and will enjoy operational, economic and environmental efficiencies through their Liquefied Petroleum Gas (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.
This is another landmark financing for the shipping industry arranged by ADIB demonstrating the Bank’s expertise and ability to finance significant assets in the marine and energy sectors. In line with our desire to promote and encourage environmentally-friendly projects, the fuel-efficient vessels will contribute to decarbonization efforts in the marine industry. With the current fluctuation of oil prices, LPG technology will be a benefit to the marine industry.
Gunther Alvarado, Chief Operating Officer of Al Seer Marine, said: “We are delighted to work together with ADIB and collaborate on achieving the completion of this financing. —Agncies
