Dubai's Enoc secures $690m from China's ICBC-led consortium
Agricultural Bank of China and China Construction Bank joined ICBC in the five-year term loan for the energy giant
Emirates National Oil Company (Enoc) has secured a five-year term worth $690m (AED2.5bn) from a consortium comprising Chinese banks Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China, and China Construction Bank (CCB), which will help Enoc finance its general corporate activities.
The funding comes in line with the oil and gas giant’s move to contribute to the UAE’s economic development through exploration and production activities, supply operations, terminals, retail and aviation fuel, and petroleum products for commercial and industrial use-related businesses.
Commenting on the deal, general manager of ICBC Dubai (DIFC) branch, Zhang Junguo, said: “This transaction highlights our confidence in Enoc long-term growth as well as our continued commitment to supporting the local economy.”
.@ENOC has secured a five-year US$690 million term loan from the Industrial and Commercial Bank of China, Agricultural Bank of China and China Construction Bank, as China’s biggest financial institutions endorse the Group’s operational & financial health.https://t.co/YZOxwNs4kj pic.twitter.com/Wdv9kciy0v— Dubai Media Office (@DXBMediaOffice) June 10, 2019
While ICBC is the largest bank in the world by total assets and net profits, Agricultural Bank of China and CCB are among the top financial institutions in China based on size, assets, and profits.
ICBC is the facility agent for the deal and has structured the transaction.
Speaking on the development, group chief executive officer of Enoc, HE Saif Humaid Al Falasi said: “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.”
In May 2019, Enoc revealed its Saudi Arabia expansion plans as part of the kingdom’s Vision 2030, which included opening of 124 services stations to meet the increasing fuel demand in the Gulf nation and creating 500 jobs.