Emirates Development Bank (EDB), the fully-owned UAE Federal Government financial entity, has announced the closure of a $44 million (AED165 million) revolving credit facility, co-arranged with First Abu Dhabi Bank (FAB), to Lamprell Energy, a leading provider of services to the international energy sector.
According to the statement, the bespoke credit facility additionally benefited from the comprehensive trade credit solutions offered by Etihad Credit Insurance (ECI), the UAE Federal export credit company.
The facility is part of EDB’s strategy to help multinational corporations to operate in priority industries and improve their contribution to the UAE’s industrial sector.
Further, Lamprell will use the facility to assist in the delivery of two new-build jack-up rigs for IMI, which are presently being built at the Group’s Hamriyah Free Zone, Sharjah yard.
Mr. Christopher McDonald, Chief Executive Officer of Lamprell said, “We are delighted to sign initial working capital facilities for the two IMI rigs and are proud of the support from our key relationship banks, and ECI in the current volatile macro environment. Lamprell has been successful in transforming its business over the past few years, making a timely diversification into renewables and digital ventures, and we are confident the new funding will strengthen our balance sheet and assist us in accessing the growth in both our addressable markets of renewables and oil and gas.”
Ahmed Mohamed Al Naqbi CEO – EDB
“This transaction with First Abu Dhabi Bank and Lamprell demonstrates our commitment to offering revolving trade finance facilities to large multinational corporates in the UAE. As part of our strategic roadmap unveiled earlier this year, we provide increased access to financial solutions to the corporates, and this facility will help us play a bigger role in catalyzing investment flows, thereby contributing to the growth of the UAE’s economy across sectors.”
Mr. Massimo Falcioni, CEO of ECI commented, “ECI, as the UAE Federal export credit company, has been actively implementing its mandate to accelerate the economic diversification policies of the country. We are pleased to be part of this agreement with leading UAE banks EDB and FAB to boost the growth of Lamprell with our innovative trade credit solutions, providing guarantees to their receivables and safeguarding them against potential commercial and non-commercial risks.”
“As the UAE seeks to increase the manufacturing sector’s contribution to the country’s economic output over the next decade, FAB is committed to supporting contractors like Lamprell who are striving to accomplish this goal by offering innovative working capital solutions that provide genuine value addition to our clients and the UAE economy,” remarked Mr. Shirish Bhide, Group Head of Corporate, Commercial and International Banking at FAB.
