Azerbaijan, Baku, Dec. 19 /Trend A.Badalova/
Arab Petroleum Investments Corp. and National Bank of Fujairah PSC agreed to lend the first first tranche of a $110 million loan to Socar Aurora Fujairah Terminal, Bloomberg reported referring to an e-mailed statement from Arab Petroleum.
Arab Petroleum Investments Corp. is a development bank owned by 10 Arab oil-producing nations.
In May of 2011 Arab Petroleum Investments Corp. was mandated the sole arranger by Socar Aurora Fujairah Terminal for a $110 million term loan facility, consisting of two tranches, to finance the phased development of the project. The first tranche will worth $61 million.
Terminal in Fujairah Port in UAE is being constructed by SOCAR Trading - subsidiary of the State Oil Company of Azerbaijan (SOCAR). SOCAR and Aurora Progress Trade House, which is based in Switzerland, reached an agreement on cooperation in the development of oil storage facilities, including providing a terminal for the storage of petroleum products in May 2010.
SOCAR Trading has already invested in the construction of a 645,000 m3 terminal in Fujairah, via SOCAR Aurora, a joint venture company with Aurora Progress and the government of Fujairah. The Fujairah Terminal includes 20 tanks and has the capacity for handling gasoline, naphtha, middle distillates and other petroleum products.
SOCAR Aurora will act as an independent terminal operator offering the infrastructure's capacity to third parties.
Chief executive and general manager of Arab Petroleum Investments Ahmed Bin Hamad Al-Nuaimi said that the bank is delighted to announce the finance package for this project that is expected to add value to the development of the oil logistics infrastructure of Fujairah, an important international petroleum trading hub, as well as the burgeoning trading sector of the region.