Prostar Capital has secured a new $280 million debt facility for the 7.4-million-barrel Fujairah Oil Terminal (FOT).
FOT accounted for some 29% of 2020 throughput at the Port of Fujairah, representing about 12 percent of the Fujairah storage market.
The new debt facility replaces the existing senior debt and creates a capital expenditure facility to fund the connection of the terminal to the Very Large Crude Carrier (VLCC) jetty and ADCOP pipeline, which delivers Abu Dhabi’s Murban crude to Fujairah. The recently launched Murban futures contract requires physical delivery in Fujairah
‘This refinancing is in line with Prostar’s strategy to further improve the financial and operating performance of our assets and enable further organic growth via robust capital expenditure programs,’ said Dave Noakes, senior managing director at Prostar Capital.
‘We have built one of the most successful terminal facilities in the region, and this VLCC expansion will further align our interests with those of our customers as we look to meet growing energy demand, particularly in Asia, where the bulk of FOT’s product is delivered.’
A group of major regional banks, comprising First Abu Dhabi Bank, Abu Dhabi Commercial Bank and Commercial Bank of Dubai, provided the new debt facilities.