BGN Confirms USD370m Ship Financing with Five Leading Middle East Gulf Banks

March 28, 2024
BGN Confirms USD370m Ship Financing with Five Leading Middle East Gulf Banks

BGN and Abu Dhabi’s Al Seer Marine secured funding from some of the Gulf region’s leading banks to support the construction of three state-of-the-art Very Large Gas Carriers (VLGCs) in South Korea and Japan.

Abu Dhabi Islamic Bank (ADIB) led the closure in March 2024 of a USD235 million syndicated transaction, bringing the total financing for BGN and Al Seer Marine’s vessel-building program to USD370 million.

The transaction was supported by other lenders, including Abu Dhabi Commercial Bank (ADCB), National Bank of Fujairah (NBF), Commercial Bank of Dubai (CBD), and The Islamic Corporation for the Development of the Private Sector (ICD), a multilateral development financial institution and the private sector arm of Islamic Development Bank (IsDB) Group. 

BGN has a long-term commitment to developing and maintaining a modern fleet to support its global physical trading platform. The new, efficient ships will provide much-needed capacity for BGN’s physical energy traders who continue to supply the world with transitional fuels such as LPG (liquefied petroleum gas), ammonia and other commodities. 

The new vessels to be delivered in 2025-26 will be equipped with cutting-edge technology and superior emissions performance features, in line with BGN’s North Gas and Lucky Gas VLGCs that were launched in 2023.

BGN is proud to have collaborated closely through a joint venture initiative with Al Seer Marine. The collaboration highlights the power of partnership in achieving complex financial arrangements and reflects the UAE’s pivotal role as an energy, maritime, and financing hub.

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