Abu Dhabi-based Ta’ziz has secured $1.39 billion (Dh5.1 billion) in financing for two strategic industrial projects in Ruwais, as the company advances the development of its chemicals and industrial ecosystem.
The company said both financing transactions were oversubscribed.
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More than $928 million (Dh3.41 billion), including $225 million (Dh826 million) in Islamic financing, has been secured for the Ta’ziz Terminal project, while more than $460 million (Dh1.69 billion) has been raised for the Ta’ziz Ammonia project.
The latest financing follows the $2 billion (Dh7.34 billion) secured by Ta’ziz in April for its methanol project. With the latest deals, total financing secured across the three projects has exceeded $3.39 billion (Dh12.44 billion).
The Ta’ziz Terminal, a joint venture between Adnoc and Advario Star Energy, will serve as the main logistics gateway for the Ta’ziz Industrial Chemicals Zone, providing liquid chemical storage and export facilities to serve regional and international markets.
The ammonia project, a joint venture between Ta’ziz, Fertiglobe, Mitsui & Co. and GS Energy Corporation, is developing a facility with an annual production capacity of one million tonnes, making it one of the largest ammonia production facilities in the region.
Construction is progressing, with engineering, procurement and construction (EPC) works on the ammonia facility, awarded to Tecnimont, more than 90 per cent complete. The terminal project, whose EPC contract was awarded to Rotary Engineering, is around 70 per cent complete.
“The successful financing of the Ta’ziz Terminal project and the Ta’ziz Ammonia project marks another major milestone in the delivery of the Ta’ziz Industrial Chemicals Zone,” said Mashal Saoud Al-Kindi, CEO of Ta’ziz and chairman of both project companies.
He said securing more than $3.39 billion across the portfolio, including the methanol financing announced in April, demonstrated international investors’ and lenders’ confidence in Ta’ziz, its partners and Abu Dhabi’s long-term industrial vision.
The projects will play a critical role in establishing a globally competitive chemicals and industrial ecosystem in Ruwais while supporting the UAE’s economic diversification objectives, he added.
Bas Verkooijen, CEO of Advario, said the strong response from lenders reflected confidence in the quality of the terminal project and the wider Ta’ziz ecosystem.
Ahmed El-Hoshy, CEO of Fertiglobe, said the competitive financing terms reflected the partners’ discipline since the project’s final investment decision. He added that the financing would support the final phase of construction and Fertiglobe’s strategy to expand its lower-carbon ammonia platform.
Mitsubishi UFJ Financial Group (MUFG) acted as financial adviser for the terminal financing, bringing together nine regional and international banks for a long-term non-recourse financing deal.
Sumitomo Mitsui Banking Corporation (SMBC) served as exclusive financial adviser for the ammonia financing, arranging a six-year term facility involving seven banks from China, Kuwait, Spain and Singapore.
Ta’ziz is developing a manufacturing, industrial services, logistics and utilities ecosystem in Ruwais to support production across the chemicals value chain.
Source: Khaleej Times