Adib to finance Dh3.4bn Borouge expansion

Abu Dhabi Islamic Bank (Adib) will provide financing to Hyundai Engineering '&' Construction (HEDC) for the newly awarded project Borouge 3 expansion with a project value Dh3.41 billion ($935 million) for the construction of utilities and off-site facilities for the project in Ruwais Industrial Complex, Abu Dhabi.

The expansion will more than double Borouge's production capacity to over 4.5 million tonnes per year by 2013, making it the largest integrated polyolefin site in the world.

The financing agreement was signed by Hae Joo Lee, Vice President and General Manager of HEDC and Tirad Mahmoud, CEO of ADIB.

Mahmoud said: "Borouge is a jewel in the crown of the Abu Dhabi manufacturing sector and the emirate is rightly proud of it. HDEC is one of the largest EPC Contractors worldwide that have a long existence in UAE and have performed many strategic projects in the region. Adib adds this to its many other financing deals this year that have aided the expansion and development of Abu Dhabi and we will continue to do so in future."

Last week, Adib announced 31.3 per cent increase in net profits in the third quarter of this year, as revenues from funding activities and fees surged significantly.

ADIB, which is the second-largest Islamic bank in the UAE, said its net profit reached Dh314.5 million in the quarter ending September 30, according to results posted on Abu Dhabi Securities Exchange website. This compared with 239.5 million dirhams in the corresponding period in 2009.

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