The Port of Fujairah signs a $245 million loan

The operator of the world's second-largest bunkering port has raised a Dh900m (US$245m) loan to fund expansion.

Port of Fujairah's loan was heavily oversubscribed.

The Port of Fujairah (PoF), operator of the world's second-largest bunkering port, has raised a Dh900 million (US$245m) syndicated loan to fund infrastructure expansion. The port had to date financed its growth through internal cash generation, making this its first syndicated facility. The loan was heavily oversubscribed, allowing the borrower to increase the size of the facility. The loan was fully underwritten by the National Bank of Fujairah as the initial lead arranger and the Commercial Bank of Dubai as the mandated lead arranger. In total, 13 banks participated in the syndication. The loan will be used "for the expansion of new and existing facilities". "The fact that the syndication loan was heavily oversubscribed is a testimony to the overall strength of the Port of Fujairah," said Sheikh Saleh bin Mohammed, the chairman of the Port of Fujairah. Gulf economies are flush with record oil revenues which are helping to sustain the construction and economic boom in the region. Ports in the UAE are expecting record profits this year amid rising imports of construction materials, cars and foodstuffs, prompting port operators to consider further expansions in infrastructure and equipment to accommodate the rapid growth. "We have clearly defined our expansion plans and their objectives, which will benefit not only the port but also the commercial support services in Fujairah and the rest of the UAE," Sheikh Saleh said. Established in 1984, the PoF is a fully owned Government entity situated about 70 nautical miles from the Strait of Hormuz. The port handles most types of shipping including bulk cargo, general cargo, oil and other commodities, as well as providing marine services.
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