Topaz Energy and Marine, a Dubai based oil and gas services company, announced today that it has concluded a $50 million syndicated Islamic lease finance facility with Standard Chartered Bank, Bank of Scotland and First Gulf Bank. The facility will be used towards the construction of eight special purpose ice class work barges, which will operate in the north Caspian region of Kazakhstan.
“This Shariah compliant facility was structured innovatively and it gives Topaz total flexibility. Standard Chartered is at the forefront of structured vessel financing and we are pleased to have concluded this transaction with one of the world’s leading marine vessel owners and operators,” said Standard Chartered’s John Iossifidis, regional head of client relations, Middle East and Pakistan.
In March last year, the two parties agreed to a long-term loan facility of $30 million for the finance the construction of a 60 metre, 7500bhp anchor handling vessel. The agreement strengthens Standard Chartered’s relationship with Topaz, and marks a concerted push by the bank in the booming marine finance sector.
“Our team has considerable expertise and experience in vessel financing throughout the Middle East, and as such we were able to recognise the strong industry fundamentals and structure the facility accordingly,” added Iossifidis.
Pramod Balakrishnan, chief financial officer, Topaz, explained that it was the depth of knowledge in the maritime finance market that proved key to selecting the bank’s services for the financing.
“Standard Chartered met our specific requirements, and they have provided us with a tailored finance facility which complements our business strategy,” said Balakrishnan.
The deal will further enhance Topaz’s operations in the Caspian region and follows a significant contract win by subsidiary BUE Kazakhstan, who announced in April that it had secured a contract with Italian oil major Agip worth up to $350 million.
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