Adex, Mashreq, ADCB to give $100mn in financing to BGN

ABU DHABI / WAM

Abu Dhabi Exports Office (Adex), the export financing arm of Abu Dhabi Fund for Development (ADFD), and its strategic partners in the banking field Mashreq and Abu Dhabi Commercial Bank (ADCB), have signed a financing facility with the global energy and commodities trading company BGN. The strategic collaboration sets the stage for a financing arrangement, offering up to $100 million to facilitate the export of energy commodities from the UAE. The syndicated financing arrangement, a revolving credit line, is embedded with an accordion feature whereby regional banks
and their overseas affiliates can contribute additional funding.
The agreement was signed by Khalil Al Mansoori, Acting Director-General of the Abu Dhabi Exports Office; Rüya Bayegan, Group CEO of BGN; Asif Karmally, Executive Head of International Corporate Banking at ADCB; and Joel Van Dusen, Senior Executive Vice President and Group Head of Corporate and Investment Banking Group of Mashreq Bank.
The event was witnessed by Mohamed Saif Al Suwaidi, Director-General of ADFD and Chairman of the Exports Executive Committee of the Abu Dhabi Exports Office; Abdulla AlShamsi, Chief Business Officer of ADCB Group; as well as other senior officials from Adex, BGN, ADCB and Mashreq Bank.
Al Suwaidi said, “This initiative reflects our commitment to strengthening the UAE’s export sector through collaborative efforts and partnering with local banks such as ADCB and Mashreq to support local businesses in their expansion efforts worldwide. Adex believes in partnering with banks and other financial institutions towards a common goal, which is rooted in the understanding that collective efforts produce results. Our collaboration with BGN is part of our endeavour to create opportunities for establishments that contribute significantly to our national economy.”
He highlighted the potential of the UAE’s advanced energy sector saying that expansion in export volumes in this domain can significantly boost the economy.
Yannick Luce, Chief Financial Officer of BGN, said, “As BGN continues to grow and diversify its trading activity across various commodity classes and geographies, so our financing needs will continue to expand and evolve. This new up to $100m syndicated revolving credit facility will complement our existing strong liquidity base and healthy banking relationships across the Middle East, Asia, North America, Europe and Africa.”
Abdulla Al Shamsi, Group Chief Business Officer at ADCB, said, “As a leading banking institution in the UAE, ADCB is proud to be working alongside partners such as Adex to facilitate the export of UAE commodities worldwide. Through this deal, we are pleased to be able to provide BGN with financing solutions to expand its global reach across a range of commodity classes. ADCB’s commodity franchise has grown significantly over the last four years; we are looking forward to building on this momentum by deepening our partnership with Adex and, in doing so, further strengthening the UAE’s export sector.”
Joel Van Dusen, Group Head of the Corporate and Investment Banking Group of Mashreq, said, “As Mashreq, we are pleased to support BGN’s growth story and expansion in the UAE through the delivery of This multi-institution financing package, the first for BGN in the region. We are also proud to partner with Adex in support of the strategic objective of UAE’s economic diversification and strengthen UAE’s position as a global leader in Trade, Energy and Commodities.”
This strategic collaboration marks a step forward in Adex’s efforts to strengthen the UAE’s position in the global energy and commodities market and reinforces the commitment of the organisation and its contributing partners to driving economic growth through strategic partnerships for financial support.