Abu Dhabi Islamic Bank (ADIB), a top-tier Islamic financial services institution, has closed a AED 1.32 billion ($360 million) Syndicated Islamic Facility for Abu Dhabi-based Gulf Marine Services (GMS), the largest provider of self-propelled self-elevating jackup barges in the world. ADIB acted as the Mandated Lead Arranger, Sole Underwriter, Sole Bookrunner, Investment and Security Agent for the facility.
The deal was tailored by ADIB to meet GMS’ specific financing needs, including re-financing existing facilities and providing finance for the acquisition of 2 additional vessels. The financing will also help GMS achieve its plan to further improve and expand its fleet through an extensive new build programme.
The Facility is a landmark transaction for Abu Dhabi’s debt capital markets and was very well received, as evidenced by the strong demand from local and regional banks which resulted in it being 2 times oversubscribed by 10 local and regional banks.
Commenting on the transaction, Arif Usmani, Global Head of Wholesale Banking at ADIB said: “We have built a world-class Corporate Finance and Investment Banking business that is equipped to deliver customised financial solutions for our clients. It is worth noting that this Facility was the first fully Islamically-financed syndicated leveraged recapitalisation in the UAE. The Facility also provided a robust financing solution for future vessel acquisitions by GMS.”
He added: “We were also pleased to further strengthen our relationship with GMS by providing this customised syndicated Islamic financing solution. It demonstrates our commitment to the growth and development of Abu Dhabi-based corporates, and we believe it is also a testament to ADIB’s continuing commitment to one of the key sectors in Abu Dhabi’s 2030 vision.”
Other banks participating in the deal were Abu Dhabi Commercial Bank PJSC and First Gulf Bank as Mandated Lead Arrangers, Mashreq Bank as Lead Arranger while Al Hilal Bank PJSC, Ajman Bank, GE Mubadala, Noor Islamic Bank PJSC, Qatar Islamic Bank, and United Arab Bank acted as Arrangers for the deal.
White & Case acted as the legal counsel to the financiers, while Gibson Dunn acted on behalf of GMS.