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FAL Oil granted USD90 million syndicated loan for expansion of its shipping fleet

: Tuesday, March 21 - 2006 @ 08:49

The syndicated loan, provided by six established banks, will be used to buy six new ships over the next year to complement the company’s existing 21-strong fleet.

The syndication received an overwhelming response from the banking sector. Syndication lead bank BNP Paribas (Suisse) S.A Geneva handed over the loan to FAL Oil Co. at a signing ceremony in Dubai.

Representatives from the other participating banks, including Gulf International Bank Bahrain, First Gulf Bank, Union National Bank, Emirates Bank International and Commercial Bank of Dubai were also present.

“This has been a huge landmark for FAL Oil Co. and a significant development for the Middle East shipping industry,”

said FAL Oil’s General Manager – Mohamed Osman.

“The syndication is the second of its kind from financiers and the positive feedback from analysts in the banking sector underlines the industry’s conviction in our business and growth capabilities. We are confident of meeting expectations and reiterating our leadership position in the Middle East,” he added.

Today, international trade is evolving to a point where interdependency and inter-connectivity between peoples and nations is crucial. Shipping has always provided the only really cost-effective method of bulk transport over any great distance. With more than 90 per cent of global trade carried by sea and an increasing demand for oil, the additional fleet will add value to FAL Oil’s business, as well as increase trade in the region.

FAL Oil’s product base comprises mainly of fuel oil, gas oil, naphtha, jet kerosene and other related petroleum products.

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Tuesday, March 21- 2006 @ 8:49 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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