The Abu Dhabi Commercial Bank announced yesterday it has signed a Dh147 million project finance deal with Horizon Djibouti Terminals Ltd SAZF.

Plans are being drawn up to offer shares in Horizon Terminals Ltd (HTL) and then float it on the Dubai Financial Market within five years.

The loan will be used to build a bulk liquid storage terminal facility at Doraleh village, 10 km from Djibouti Port on the Red Sea. The Abu Dhabi Commercial Bank (ADCB) loan is 70 per cent of the total project cost of Dh213 million.

Horizon Terminals Ltd (HTL), which is owned by Emirates National Oil Company (Enoc), manages the port. "The move into Djibouti is all about implementing our strategy of becoming a global player in the international terminalling arena," said Yusr H. Sultan, Enoc chief executive for shipping, terminalling and LPG.

Construction on the Dh213 million Horizon terminalling facility is in progress and is expected to be completed by next June. ADCB is the sole financier.

"ADCB is a bank with a long heritage in creating project finance deals. In particular, we are a dominant player in the oil sector, shipping, civil aviation, chemicals and the LPG industry," said Ahmad Saleh Al Banna, senior vice-president, corporate division, Dubai and northern emirates, ADCB.

The terminal will be designed for storage and handling of jet A1, Mogas, kerosene, diesel, fuel oil, pressurised mixed LPG, chemicals and edible oils. After completion, the terminalling facility will provide capacity for 230,600 cubic metres (cbm) of petroleum products, 7,700 cbm of easy chemicals and vegetable oils and LPG with storage capacity of some 1,200 cbm.

The project is managed by the E & C Group of Enoc and is co-promoted by Enoc, Independent Petroleum Group of Ku-wait, Essence Management Ltd, Boreh International FZE and the Government of Djibouti. "HTL is currently owned by Enoc but plans are under way to open it to large investors with a view to floating on the Dubai Financial Market within five years."