Contractor obtains Dh404m financing

National Bank of Abu Dhabi provided $110 million of financing for the construction of a new vessel for the National Petroleum Construction Company.

National Petroleum Construction Company (NPCC), a contractor 70 per cent owned by the Abu Dhabi Government, has obtained Dh404 million (US$110m) of loans to build a vessel for offshore oil operations.

The financing was provided by Abu Dhabi National Leasing, a unit of the National Bank of Abu Dhabi (NBAD), officials said. The seven-year loan will be used to build the vessel in a Chinese shipyard for delivery next year. The Abu Dhabi investment company Waha Capital helped to arrange the transaction.

The financing arrangement specifies that Abu Dhabi National Leasing will pay 100 per cent of the cost of the ship's hull over two years. The company will then enter into a five-year lease with NPCC.

The vessel will lay offshore pipelines and install offshore modules and marine structures that weigh up to 4,200 tonnes.

"This latest transaction will go a long way in furthering the long-standing relationship between NBAD's Abu Dhabi National Leasing Company and NPCC," said Yousef Abdulla Yousef, the managing director of Abu Dhabi National Leasing.

"Abu Dhabi continues to invest in developing world-class infrastructure, and NBAD, as the premier bank of the UAE, is committed to promoting economic activity in the UAE and to provide all possible support and assistance to the economic development of the UAE," Mr Yousef said.

NPCC, which was formed in 1973, is 70 per cent owned by the Government's General Holding Corporation and 30 per cent by Consolidated Contractors Group.

NPCC is planning a regional expansion in its service to the offshore industry, including India, the company said.

"We are keen to explore this avenue further in future opportunities of this nature," said Aqeel Madhi, the chief executive of NPCC, describing talks with Abu Dhabi National Leasing about more financing facilities in the future.