Energy, Oil & Gas

TA’ZIZ secures $1.39bn financing for strategic Ruwais projects

ABU DHABI
TA’ZIZ secures $1.39bn financing for strategic Ruwais projects

TA’ZIZ has announced the financial close of $1.39 billion (AED 5.10 billion) in financing for two strategic projects in Ruwais, reinforcing international investor confidence in Abu Dhabi’s industrial growth strategy and the UAE’s position as a leading destination for long-term infrastructure investment.

The financing includes more than $928 million (AED 3.41 billion), comprising $225 million (AED 826 million) in Islamic financing, for the TA’ZIZ Terminal project, while over $460 million (AED 1.69 billion) has been secured for the TA’ZIZ Ammonia project. Both transactions were oversubscribed, reflecting strong lender demand.

The latest deals follow the $2 billion (AED 7.34 billion) financing secured in April for TA’ZIZ’s methanol project, bringing total financing across the portfolio to more than $3.39 billion (AED 12.44 billion).

Mashal Saoud Al-Kindi, TA’ZIZ CEO and Chairman of both projects, said: "The successful financing of the TA'ZIZ Terminal project and the TA'ZIZ Ammonia project marks another major milestone in the delivery of the TA’ZIZ Industrial Chemicals Zone.

Securing more than $3.39 billion (AED 12.44 billion), including the methanol financing announced in April, across the portfolio demonstrates the strong confidence that international investors and lenders have in TA’ZIZ, our partners, and Abu Dhabi’s long-term industrial vision. These projects will play a critical role in establishing a globally competitive chemicals and industrial ecosystem in Ruwais while supporting the UAE’s economic diversification objectives."

The TA’ZIZ Terminal, a joint venture between ADNOC and Advario Star Energy, will provide liquid chemical storage and export facilities, serving as the logistics gateway for the TA’ZIZ Industrial Chemicals Zone.

Meanwhile, the TA’ZIZ Ammonia project, developed in partnership with Fertiglobe, Mitsui & Co. and GS Energy Corporation, will establish a production facility with an annual capacity of one million tonnes of ammonia.

Bas Verkooijen, CEO of Advario, said: "The strong response from lenders reflects the quality of this project and the confidence the market has in the TA'ZIZ ecosystem. Securing long-term, non-recourse financing on these terms is a significant milestone for a facility of this scale, and it allows us to progress construction with certainty."

Ahmed El-Hoshy, CEO of Fertiglobe, said: "Reaching this milestone on competitive terms reflects the discipline the partners have brought to this project since the final investment decision. The 1 mtpa facility is well advanced, and this financing underpins the final phase of delivery. It is an efficient use of structuring to enhance shareholder returns and another step in Fertiglobe's strategy to grow our lower-carbon ammonia platform alongside ADNOC, TA’ZIZ and our partners in Ruwais.”

MUFG advised on the Terminal financing, bringing together nine regional and international banks, while SMBC acted as exclusive financial adviser for the Ammonia financing, securing participation from seven banks across China, Kuwait, Spain and Singapore through a six-year facility.

Construction is progressing, with ammonia EPC works, awarded to Tecnimont, more than 90 per cent complete, while the Terminal project, awarded to Rotary Engineering, has reached approximately 70 per cent completion. -TradeArabia News Service