ENOC Group has signed a five-year, $690 million term loan from a Chinese consortium of banks, the company has announced.
The term loan will be used to finance general corporate purposes across the group’s business divisions in exploration and production, supply and operations, terminals, fuel retail, aviation fuel and petroleum products.
The consortium consists of Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China and China Construction Bank (CCB), China’s top three banks in terms of size, assets and profits.
ICBC will serve as the coordinating bank.
“With rapid changes in the evolving energy industry, there is a global shift towards alternative energy, innovation and digitisation,” said ENOC Group CEO Saif Humaid Al Falasi said.
“We are forerunners in the areas of innovation and technology in the regional energy market and are pleased to see international financial institutions trusting and endorsing our growth plans and financial outlook,” he added.
According to a study by S&P Global Market Intelligence released last year, China’s top four banks have overshadowed their Western counterparts, with the four – ICBC, CCB, Bank of China and Agricultural Bank of China – posting a combined $13.637 trillion in assets.
“The financing also underpins confidence by international lenders in the growth and operational experience of ENOC over the last 25 years in this region and internationally,” Al Falasi added.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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