The Arab Petroleum Investments Corporation (Apricorp), a multilateral development bank owned by the 10 member states of the Organisation of Arab Petroleum Exporting Countries (OAPEC), has announced the signing of an agreement to deliver the first tranche of a finance package in favour of Socar Aurora Fujairah Terminal (SAFT).
The financing will help fund the construction of a 641,000 m3 oil terminal in Fujairah.
The project, known as SAFT, is a joint venture between Socar Trading, the international marketing, trading and development arm of the State Oil Company of the Azerbaijan Republic (SOCAR), one of the largest national oil companies in the world; Aurora Progress, the Swiss based commodity trading house; and the Government of Fujairah. The government of UAE has a 17% stake in Apricorp.
In May this year, Apricorp was mandated the sole arranger by SAFT for a $110 million term loan facility, consisting of two tranches, to finance the phased development of the project . Apricorp won the mandate against competition from international banks, following SAFT’s detailed and rigorous selection process. This is the first financing deal to be completed in 2011 for a terminal project in the GCC region.
Under its mandate for the project, Apricorp has been working closely with SAFT and various independent advisors to structure an optimal finance package with funding for Tranche 1, worth $61 million (€84 million) from Apricorp and the National Bank of Fujairah.