The National Bank of Abu Dhabi (NBAD) has signed a deal with National Petroleum Construction Company (NPCC), to provide it $100 million (nearly Dh367 million) in financing for constructing a new vessel.
The proposed financing structure is a two-plus-five (2+5) years to fully finance one new jack up vessel (SEP 550) for NPCC. NBAD will finance 100 per cent of the cost of the construction for two years and will enter into a five-year bilateral finance with NPCC. Waha Capital gave financial advice to NPCC.
The agreement was signed by Aqeel A. Madhi, Chief Executive Officer of NPCC and Mark Yassin, Senior General Manager, Global Banking, at NBAD.
"This latest transaction will go a long way in furthering the long standing relationship between NBAD and NPCC," said Yassin. "Abu Dhabi continues to invest in developing world class infrastructure and NBAD is committed to promoting economic activity in the UAE and to provide all possible support and assistance to the economic development of the UAE."
Aqeel A. Madhi, Chief Executive Officer of NPCC, praised the efforts of NBAD and its constructive cooperation in providing the financing facilities to build a new barge to join the company’s fleet as part of NPCC’s plan for geographical expansion in the offshore industry.
The financed vessel, weighing about 150 tons, will be used for the installation and maintenance activities in oil and gas fields, and for laying offshore pipelines. The vessel, now under construction, is scheduled to be delivered in 2014.
NPCC is a public joint stock company owned by the General Holding Corporation (Senaat) which holds a 70 per cent interest and the Consolidated Contractors Group (S.A.L.), which holds the remaining 30 per cent.
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