Prostar Capital, a midstream energy infrastructure firm, has announced that it has successfully completed a refinancing for its portfolio company Fujairah Oil Terminal (FOT).
The new $280 million debt facility will replace the existing senior debt as well as create a capital expenditure facility to fund the connection of the terminal to the Very Large Crude Carrier (VLCC) jetty and ADCOP pipeline, which delivers Abu Dhabi’s Murban crude to Fujairah.
FOT is a 7.4 million-barrel bulk liquid storage terminal located in the Port of Fujairah, a major strategic energy trading center and one of the largest bunkering ports in the world.
“We’re very excited to be able to take advantage of FOT’s strong financial performance and beneficial market conditions to conduct this refinancing,” said Steve Bickerton, senior managing director at Prostar Capital and chairman of FOT.
“Not only have we secured more favourable terms and increased liquidity, but also the capital to fund a major VLCC expansion project that will improve operational efficiency and help the facility build on its loyal customer base for years to come.”
Once completed, the planned capital project will connect the terminal’s crude oil tanks to the Port of Fujairah’s VLCC loading facility.
Bickerton said the improvements will increase FOT’s competitiveness, expand its customer base, and improve operating efficiency. It will also allow the terminal to leverage the expected growth in crude trading in the region, complemented by the recent launch of the world’s first Murban futures contract, which requires physical delivery in Fujairah.
Dave Noakes, senior managing director at Prostar Capital, said: “We have built one of the most successful terminal facilities in the region, and this VLCC expansion will further align our interests with those of our customers as we look to meet growing energy demand, particularly in Asia, where the bulk of FOT’s product is delivered.”
A group of regional banks, comprising First Abu Dhabi Bank, Abu Dhabi Commercial Bank, and Commercial Bank of Dubai, provided the new debt facilities.
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