Industry, Logistics & Shipping

Mercantile & Maritime to build region's biggest biofuel plant in Fujairah

Mercantile & Maritime Group, a global provider of energy and logistics, specialising in the physical trading of oil and gas, as well as a proven advisory service provider, has announced plans to build the region's largest biofuel facility in the Middle East region at Fujairah.
 
Announcing this, Mercantile & Maritime Group said the biofuel facility at its fully owned and operated facility, Mena Terminals in Fujairah will be expanded by over 1 million sq ft and is set for completion by 2026. 
 
Once operational, it will produce up to 150 million litres of sustainable aviation fuel (SAF) annually, representing nearly 10% of current global SAF production. 
 
This marks a significant milestone for sustainable energy in the Middle East and aligns with the UAE’s goals of reducing carbon emissions and its ambition to become a global hub for low-carbon aviation fuel, it stated.
 
On the key project, Mercantile & Maritime CEO Murtaza Lakhani, said: "This expansion is a significant step forward for us and sustainable energy across the UAE."
 
It highlights the group’s commitment to advancing sustainable energy solutions and supports the UAE’s goal of leading the way toward a greener future. 
 
"Fujairah’s strategic location and forward-thinking leadership make it an ideal home for our biofuel facility at Mena Terminals, the largest of its kind in the Middle East, and our investment in this facility reflects our commitment to environmental responsibility. In line with the ‘UAE Net Zero 2050’ initiative, we are proud to contribute to a sustainable future for the UAE, and the wider region," he noted.
 
"By producing SAF locally, we are reducing the nation’s reliance on imports, thereby lessening carbon emissions and minimizing environmental impact across the entire supply chain, including traditional shipping methods," stated  Lakhani.
 
"Alternatively, we will utilize the local rail network to transport SAF across the UAE, with future plans for regional distribution. The SAF processing plant will integrate advanced artificial intelligence to optimise refinery operations and maintenance. Additionally, the facility will adhere to global standards set by IATA, Corsia and RED III, supporting the highest levels of environmental compliance," he added.-TradeArabia News Service 

Industry, Logistics & Shipping

PIF-backed Lucid raises $1.1bn from senior notes to repay debt

US electric vehicle maker Lucid Motors, which is majority-owned by Saudi Arabia's sovereign wealth fund PIF (Public Investment Fund), has raised $1.1 billion from convertible senior notes to repay existing debt. 
 
Announcing the pricing of its offering of $1 billion aggregate principal amount of 5% convertible senior notes due 2030 in a private offering, Lucid said this offering includes the full exercise of an option that allowed initial purchasers to acquire an additional $100 million in aggregate principal of these notes, marking a pivotal moment for the company as it seeks to strengthen its financial position and support future growth.
 
According to Lucid, the net proceeds from the offering will be $983.6 million (or approximately $1.08 billion if the initial purchasers fully exercise their option to purchase additional notes), after deducting the initial purchasers' discounts and commissions and estimated offering expenses. 
 
Lucid has allocated around $118.3 million of these proceeds to cover the costs associated with the capped call transactions. 
 
The majority of the funds will be used to repurchase about $1.05 billion in aggregate principal of its outstanding 1.25% convertible senior notes due in 2026, stated the Silicon Valley-based EV maker in a statement. 
 
The remaining proceeds will be directed toward general corporate purposes, allowing Lucid to maintain flexibility in its financial strategy, it added.
 
On the new move, Lucid’s Chief Financial Officer Taoufiq Boussaid said: "We are delighted to have completed this offering, which better positions Lucid for future growth and success, while strengthening our already close partnership with the PIF, and minimizing any effect to existing shareholders."
 
"The ongoing support from the PIF is seen as a strategic advantage for Lucid as it aims to advance its mission of creating a more sustainable future in the automotive industry," he added.-TradeArabia News Service

Industry, Logistics & Shipping

Investcorp Capital sells prime US industrial portfolio for $360m

Investcorp Capital, a major player in the private markets and alternative investment sector, has  announced that it has completed the sale of its US industrial real estate portfolio for an aggregate sale price of $360 million.
 
The portfolio, which spans six investments across six states and 2.3 million sq ft, fetched the group a 40% increase in its returns as the portfolio was bought less than four years ago for an initial purchase price of $262 million.
 
The portfolio was sold to take advantage of the robust industrial capital markets and strong property operating fundamentals over its hold period, said Investcorp Capital in a statement.
 
Returns for the portfolio from acquisition in March 2021 are estimated to be 12% Internal Rate of Return (IRR) and a 1.4x Multiple on Invested Capital (MOIC), above projections of 8.5%.
 
The sold portfolio investments included:
 
*Tempe Commerce Park: 536,000 sq ft across 5 buildings
*Minneapolis Industrial Portfolio: 616,000 sq ft across 16 buildings
*Florida Industrial Portfolio: 512,000 sq ft across 13 buildings
*California Industrial Portfolio: 303,000 sq ft in one building
*New Jersey Industrial Portfolio: 174,000 sq ft across 3 buildings and
*Nevada Industrial Portfolio: 165,000 sq ft in one building
 
On the transaction, Interim CEO Mohamed Aamer, said: "We are pleased to have capitalised on the attractive exit opportunities in the industrial real estate asset class. Our priority is to invest in opportunities to provide the best possible returns for shareholders."
 
"The continued prevalence of e-commerce, along with limited levels of new supply in the US, have contributed to significant growth for the industrial sector over the past five-plus years, validating the strength of our investment thesis. We continue to see further opportunities within the sector," he stated.
 
Investcorp Capital said the properties in the portfolio reside in top industrial submarkets with resilient demand. 
 
The assets boast diversified rent rolls and have continued to experience strong rental growth over the last few years despite rising interest rates. This showcases the company’s ability to add long-term value despite fluctuating economic environments, it added.-TradeArabia News Service