Prostar Capital refinances Fujairah Oil Terminal

Prostar Capital said it has completed a refinancing for its portfolio company Fujairah Oil Terminal (FOT) with a new US $280 million debt facility. 

“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 in a statement. 

Once completed, the project will connect the terminal’s crude oil tanks to the Port of Fujairah’s VLCC loading facility via Matrix Manifold 2 (MM2) and the ADCOP pipeline, which is currently being extended to MM2, said the company in the statement.

“This refinancing is in line with Prostar’s strategy to further improve the financial and operating performance of our assets and enable further organic growth via robust capital expenditure programs,” added Dave Noakes, senior managing director at Prostar Capital in the statement.

The company said that 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,” said the company.

FOT is a 7.4-million-barrel bulk liquid storage terminal located in the Port of Fujairah. A group of major regional banks, comprising First Abu Dhabi Bank, Abu Dhabi Commercial Bank and Commercial Bank of Dubai, provided the new debt facilities which replaces the existing senior debt.