The UAE's Port of Fujairah, operator of the world's second-largest bunkering port, said on Monday it had signed an agreement to borrow 900 million dirhams ($245 million) to finance expansion plans.

The port's debut syndicated loan facility arranged by the National Bank of Fujairah and Commercial Bank of Dubai was heavily oversubscribed. It will be used to expand existing facilities and develop new facilities.

'We have clearly defined our expansion plans and their objectives, which will benefit not only the port but also the commercial support services in Fujairah and the rest of the UAE,' said Sheikh Saleh Bin Mohammed Al-Sharqi, chairman of Port of Fujairah, in a statement.

Established in 1984, the Port of Fujairah is wholly owned by the government of the emirate, one of seven comprising the UAE federation.

Its strategic location on the eastern seaboard of the UAE, close to the Strait of Hormuz shipping chokepoint, has helped it become a trade link between the Indian subcontinent, the Far East, the Middle East and Europe. - Reuters