June 10, 2019
Dubai, United Arab Emirates, 10 June 2019: ENOC Group has secured a five-year US$690 million term loan from a Chinese consortium of banks as China’s biggest financial institutions endorse the Group’s operational and financial health.
The term loan will finance general corporate purposes as ENOC continues to fuel the local economy through its business divisions in exploration & production, supply & operations, terminals, fuel retail, aviation fuel and petroleum products for commercial & industrial use.
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 acts as coordinating bank.
His Excellency Saif Humaid Al Falasi, Group Chief Executive Officer of ENOC, said: “With rapid changes in the evolving energy industry, there is a global shift towards alternative energy, innovation and digitisation. 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.”
ICBC, the largest bank in the world by total assets and net profit, has been appointed as the facility agent for the deal and has structured the transaction.
According to a study by S&P Global Market Intelligence last year that included 28 banks across the world with over US$1 trillion in assets across Asia, North America and Europe, the top four banks were from China. Banks from the Asian economic superpower have overshadowed their Western counterparts as the big four lenders of China - ICBC, CCB, Bank of China (BOC) and Agricultural Bank of China grew their assets year-over-year, posting a combined US$13.637 trillion in assets.
“The financing also underpins confidence by international lenders in the growth and operational excellence of ENOC over the last 25 years in this region and internationally,” added Al Falasi
Zhang Junguo, General Manager of ICBC Dubai (DIFC) Branch, said: “We would like to thank ENOC for trusting us to lead this financing. This transaction also highlights our confidence in ENOC’s long term growth as well as our continued commitment to supporting the local economy.”