By Andy Sambidge
Abu Dhabi Commercial Bank says it will provide funding for development of Khalifa Port Container Terminal
Abu Dhabi Commercial Bank (ADCB) announced on Sunday a financing agreement with Abu Dhabi Terminals (ADT) for the development of the Khalifa Port Container Terminal.
The AED 300 million ($81.6 million) agreement marks the first long-term finance solution for ADT, the region's first semi-automated and most technologically advanced container terminal, a statement said.
ADCB will act as the sole provider of cash management, interest rate and lending services to support ADT's ambitious growth strategy, it added.
ADCB's facilities will be used primarily for capital expenditure, corporate services, and the re-financing of an existing short-term bridge loan.
Colin Fraser, head of wholesale banking at ADCB said: "ADCB is committed to playing an integral role in the development of the UAE's critical infrastructure and is proud to be the key relationship bank for Abu Dhabi Terminals."
Martijn Van De Linde, CEO of Abu Dhabi Terminals, added: "We are extremely pleased to sign this long-term agreement with ADCB."
Khalifa Port Container Terminal has witnessed a 20 percent year-on-year increase in containers handled since its opening in December 2012.
Van De Linde said: "This important financial partnership with ADCB allows us to invest in the required expansion to support the economic growth of the UAE and at the same time provide our customers with fast and efficient services."
Abu Dhabi Terminals is majority owned by the Government of Abu Dhabi through Abu Dhabi Ports Company, Mubadala and Mubadala Infrastructure Partners Ports.
With an exclusive 30-year concession from Abu Dhabi Ports Company, ADT operates Khalifa Port Container Terminal and is classified as a strategic semi-government entity for the Government of Abu Dhabi.