Capital Bank, a leading bank in Jordan, said it has arranged a JD56.8 million ($80 million), syndicated loan for the Aqaba Container Terminal (ACT) to fund its terminal expansion project.

The eight-year syndicated loan was arranged by Capital Investments, the investment arm of Capital Bank.

The Jordanian bank is also leading the syndicate which comprises the Social Security Investment Fund, Cairo Amman Bank and Jordan Kuwait Bank.

The project will be implemented in accordance with the action plan set by APM Terminals, which is responsible for development, management and operation of terminal, and involves the quay extension from 540 metres to one kilometre besides investments in container handling and transportation equipment to raise terminal’s throughput capacity.

Commenting on the transaction, Haytham Kamhiyah, general manager of Capital Bank, said the bank's partnership with ACT was in line with its commitment to providing premium financial services on both the individual and corporate levels.

'This agreement embodies our keen interest in offering project financing services by arranging and leading syndicated loans, through which we strive to cater to the needs of various economic sectors and support the implementation of large-scale investment projects that benefit the national economy,' he added.

Omar Al-Wir, CEO of Capital Investments, said, “Our role in the transaction reflects our understanding of importance of expanding the capacity of ATC, which is the Kingdom’s primary access to the international shipping lanes of Red Sea and beyond, while also underscoring our commitment to contributing to development of Jordanian economy.”

“The berth expansion efforts are already underway, and the utilization of the loan will begin during the next few months,” said  Klaus Laursen, CEO of ACT.

“This project, which is scheduled to be completed within three years, comes to reaffirm our commitment to bolstering the operational capacity of the Aqaba port. The signing of this agreement also reflects our desire to contribute to Jordan’s long-term economic prosperity and to support sustainable development in the Kingdom,” he noted.

Laursen commended Capital Investments for its leading role in promoting investment in Jordan and providing a comprehensive range of financial and investment solutions to its clients.

He also thanked the participating financial institutions for their involvement in the project, stressing that their contribution will greatly facilitate the completion of a significant portion of the terminal expansion plans.-TradeArabia News Service