Thursday 9 July 2020

Enoc Group gets $690m term loan from Chinese banks

DUBAI, June 10, 2019

UAE-based Emirates National Oil Company (Enoc) Group has secured a five-year term loan worth $690 million from a Chinese consortium of banks as these financial institutions endorse the group’s operational and financial health.

The term loan will finance general corporate purposes as Enoc continues to fuel the local economy through its business divisions in exploration and production, supply and operations, terminals, fuel retail, aviation fuel and petroleum products for commercial and industrial use, said a statement from Enoc.

The consortium comprises Industrial and Commercial Bank of China (ICBC); Agricultural Bank of China and China Construction Bank - the country’s top three banks in terms of size, assets and profits.

ICBC, the largest bank in the world by total assets and net profit, has been appointed as the facility agent for the deal and has structured the transaction, it stated.

Group CEO Saif Humaid Al Falasi said: "With rapid changes in the evolving energy industry, there is a global shift towards alternative energy, innovation and digitisation."

"We are forerunners in the areas of innovation and technology in the regional energy market and are pleased to see international financial institutions trusting and endorsing our growth plans and financial outlook," noted Al Falasi.

According to a study by S&P Global Market Intelligence last year that included 28 banks across the world with over $1 trillion in assets across Asia, North America and Europe, the top four banks were from China.

Banks from the Asian economic superpower have overshadowed their Western counterparts as the big four lenders of China - ICBC, CCB, Bank of China and Agricultural Bank of China grew their assets year-over-year, posting a combined $13.637 trillion in assets.

Al Falasi Zhang Junguo, the general manager of ICBC Dubai (DIFC Branch), said: "The financing also underpins confidence by international lenders in the growth and operational excellence of Enoc over the last 25 years in this region and internationally."

"We would like to thank Enoc for trusting us to lead this financing. This transaction also highlights our confidence in Enoc’s long term growth as well as our continued commitment to supporting the local economy," he added.-TradeArabia News Service


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