Dubai: United Arab Chemical Carriers (UACC), a chemical product tanker owner, has signed a $280 million (Dh1 billion) credit facility with eight international banks to expand its fleet.
In an interview with Gulf News, Waleed Al Dawood, UACC Chairman, said: "This transaction will provide sufficient cash for the first step in the company growth plan and a new building programme of modern product and chemical tankers."
Al Dawood said the company has a good reputation and operates on a successful business model that helped it get a credit facility with a consortium of eight international banks during this challenging global financial situation.
"We will buy six more vessels of medium-range tankers from South Korea to meet the high demand in the region. The deliveries will take place in 2011 and 2012," he said.
UACC is a shipowner based in Dubai. It was set up in 2007 by a group of companies and government institutions from the UAE, Saudi Arabia, Qatar, Bahrain and Kuwait. Its principal shareholder includes the United Arab Shipping Company (UASC), Kanoo, Gulf International Bank and Qatar Navigation.
Al Dawood said that the region's economy still relies on oil and therefore should provide all developed means and facilities to serve this segment.
According to its development plan, UACC is looking to increase its fleet with up to 25 vessels in the next five years.
"We believe the size and the terms of this agreement reflect the quality of our assets, the UACC strong shareholder base, as well as our future prospects and outstanding relationships with charterers and other partners in the Arabian Gulf," he said.
Jens Groenning, UACC CEO, said: "Our modern fleet of medium-range and long-range tankers is ideal for the regional trade, and also worldwide.
"With a strong shareholder base, a proximity to the growing markets in the Middle East and India, in addition to having a focus on maintaining a modern fleet, UACC is well-positioned for further growth and expansion."
UACC senior vice-president of finance Ketil Ostern added: "The new facility is based on traditional ship finance principles, and will enable UACC to move into the next phase of its development plan."
Citi, Nordea, Deutsche Bank, ITF Suisse, NIBC and Fortis Nederland are the mandated lead arrangers, while Societe Generale and Natixis are participants. The bookrunners are Citi, Nordea and Deutsche Bank and also act as the facility agent and coordinating banks.
Meanwhile UASC has announced that effective from today all its activities in Spain will be run under a new joint venture, United Arab Shipping Agencies Company Iberia SL with UASC's agent in Spain Roca Monzo attending to all UASC vessels and cargo operations in Spain and Portugal.
