Energy and commodities trading 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 very large gas carriers (VLGCs) in South Korea and Japan.

BGN has confirmed that Abu Dhabi Islamic Bank (ADIB) led the closure in March 2024 of a $235m syndicated transaction, bringing the total financing for BGN and Al Seer Marine’s vessel-building program to $370m.

The deal was backed 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), reads the statement of BGN.

The new vessels, which are expected 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,” as it is revealed by the energy and commodities trader.

Abu Dhabi Islamic Bank (ADIB) has confirmed the deal in an official statement in its website mentioning that “the financing, conducted through ABGC, a joint venture between energy and commodities trader BGN and Al Seer Marine, will facilitate the construction of three new energy-efficient VLGCs, with two vessels slated for delivery in 2025 and the third vessel expected in 2026.”

Mohammed Ali AlFahim, Acting Global Head of Wholesale Banking at ADIB, said: “We are delighted to lead this syndication, which underscores our commitment to supporting strategic initiatives that promote sustainable development and innovation in the maritime sector.

“The completion of these VLGC vessels will not only enhance the UAE’s maritime position but also contribute to the nation’s role as a critical maritime hub on the global stage and will contribute to decarbonization efforts in the marine industry.”

Source: BGN, Abu Dhabi Islamic Bank (ADIB).