Abu Dhabi Islamic Bank (ADIB) has announced the successful closure of a sharia compliant syndicated transaction totaling Dh865 million for BGN and Al Seer Marine to finance new and energy – efficient gas carriers. This financing marks the second tranche of a larger syndication amounting to USD 370 million, which will be used to finance the construction of three state-of-the-art Very Large Gas Carriers (VLGCs) in South Korea and Japan.
ADIB acted was as the mandated lead arranger, coordinator, bookrunner, shari’a advisor, investment and security agent on the deal, and was supported by several mandated arrangers specialised in the maritime and energy sectors including Abu Dhabi Commercial Bank (ADCB), National Bank of Fujairah (NBF), Commercial Bank of Dubai (CBD), and a strategic partner from KSA The Islamic Corporation for the Development of the Private Sector (ICD), a multilateral development financial institution and the private sector arm of Islamic Development Bank (IsDB) Group. The documentation and coordination of the transaction were handled by leading global law firms Dentons, as the Syndicate’s Legal Counsel, and Holman Fenwick Willan (HFW) as the Company’s Legal Counsel.
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 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.
Mohammed Ali AlFahim, Acting Global Head of Wholesale Banking at ADIB, commented: “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. 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 decarbonization efforts in the marine industry.”—Zawya
