The Strategic Development Fund (SDF), the investment arm of UAE-based Tawazun Council, signed a funding agreement of $100 million through its Venture Debt Program with PT PAL, the Indonesian shipbuilder, to fund bank guarantee requirements for its 163 meter LPD Vessel that will be delivered to the UAE.
The funding will be executed in collaboration with the Commercial Bank of Dubai (CBD), one of SDF’s venture debt program partners.
The agreement took place in IDEX 2023 and was signed by Mr. Abdulla Naser Al Jaabari, Managing Director and Chief Executive Officer of SDF, and Dr. Kaharuddin Djenod, Chief Executive Officer of PT PAL Indonesia.
Mr. Abdulla Naser Al Jaabari, Managing Director and Chief Executive Officer of SDF, said that “The agreement between SDF and PT PAL is the first-of-its-kind for our Venture Debt Program which will see our Program fund an international defense contractor to support their delivery of a major contract to the UAE customers and which includes a requirement for PT PAL to have in country added value by providing major industrial work packages towards the UAE marine and defense industry companies, and support our mandate in leveraging our funding and investments to create economic impact and diversification towards the UAE’s strategic industries.”
Ms. Zeyana Saleh Al Hemeiri, Principal, Head of SDF’s Ventures Debt Program, stated that “We are delighted to pilot this new offering, designed to support international defense companies working with the UAE, while bringing significant business towards the UAE local industry SMEs through our Venture Debt Programme, that is committed to supporting the development of local private sector industrial and technological capabilities through innovative financing programs.“
“Since the launch of our venture debt program in 2019, we funded more than 13 UAE-based companies (35 projects) in the UAE’s strategic industries, SDF has recently expanded its target market segments beyond defense, security, and aviation to include SMEs with viable projects and value-added content in industries related to advanced manufacturing, oil & gas, urban mobility, food tech, and autonomous,” Ms. Al Hemeiri added.
Dr. Djenod said that “We are pleased with the support provided by SDF, which will allow us to manage our funding requirements to meet the UAE’s naval needs, and we are proud this Program will include a major contribution towards the UAE maritime industry while continuing to strengthen our naval technology and offerings.”
