Emirates Development Bank (“EDB“) announced the closure of a AED 165 million revolving credit facility, co-arranged with First Abu Dhabi Bank (“FAB”) to Lamprell Energy Ltd, a leading provider of services to the international energy sector. The bespoke credit facility additionally benefited from the comprehensive trade credit solutions provided by Etihad Credit Insurance (ECI), the UAE Federal export credit company.
The facility is in line with EDB’s strategy to support large corporates operating in priority sectors and enhance their contribution to the UAE’s industrial sector.
The facility will be utilised to support Lamprell in delivering two new build jack-up rigs for IMI which are currently under construction at the Group’s Hamriyah Free Zone, Sharjah yard.
Commenting on the loan facility, Ahmed Mohamed Al Naqbi, CEO of Emirates Development Bank, said: “This transaction with First Abu Dhabi Bank and Lamprell demonstrates our commitment to offer revolving trade finance facilities to large multinational corporates in the UAE. As part of our strategic roadmap unveiled earlier this year, we provide increased access to financial solutions to the corporates, and this facility will help us play a bigger role in catalysing investment flows, thereby contributing to the growth of the UAE’s economy across sectors.”
For his part, Christopher McDonald, Chief Executive Officer of Lamprell, said: “We are delighted to sign initial working capital facilities for the two IMI rigs and are proud of the support from our key relationship banks, and ECI in the current volatile macro environment. This demonstrates the high level of support and close relationships that we maintain with regional financial institutions. Lamprell has been successful in transforming its business over the past few years, making a timely diversification into renewables and digital ventures, and we are confident the new funding will strengthen our balance sheet and assist us in accessing the growth in both our addressable markets of renewables and oil and gas.”
Massimo Falcioni, CEO of ECI, said: “ECI, as the UAE Federal export credit company, has been actively implementing its mandate to accelerate the economic diversification policies of the country. We are pleased to be part of this agreement with leading UAE banks EDB and FAB to boost the growth of Lamprell with our innovative trade credit solutions, providing guarantees to their receivables and safeguarding them against potential commercial and non-commercial risks.”
Shirish Bhide, Group Head of Corporate, Commercial and International Banking at FAB, said: “First Abu Dhabi Bank is delighted to complete this transaction with Lamprell, Emirates Development Bank and Etihad Credit Insurance. As the UAE seeks to increase the manufacturing sector’s contribution to the country’s economic output over the next decade, FAB is committed to supporting contractors like Lamprell who are striving to accomplish this goal by offering innovative working capital solutions that provide genuine value addition to our clients and the UAE economy.”