The Abu Dhabi Exports Office (ADEX) and First Abu Dhabi Bank (FAB) have successfully more than doubled a nine-lender finance facility for global energy trader BGN to $232.5 million.
Originally set at $100 million with a $120 million target, the oversubscribed facility marks a watershed in regional trade finance by incorporating an innovative Murabaha tranche to accommodate Islamic banks alongside conventional financing.
“By seamlessly integrating both conventional and Islamic banks into a single, innovative financing structure, ADEX is supporting the UAE’s dynamic trade finance ecosystem, solidifying our nation’s position as a competitive global hub for commerce. This alliance sets a new standard for cross-border financing, propelling the UAE to the forefront of the evolving financial landscape,” said Rüya Bayegan, Group CEO of BGN.
BGN seeks stronger financial partnerships in the GCC
In recent years, the UAE’s robust trade finance sector has evolved into a highly sophisticated enabler for global players such as BGN, emboldening them to optimize capital and drive sustained growth. In 2024, UAE trade levels surged to an all-time high of $800 billion.
Central to this economic vitality is the UAE’s position as one of the world’s top oil producers, with the energy sector contributing approximately 30 percent to the country’s GDP. Furthermore, oil and gas exports account for nearly 13 percent of the UAE’s total export value, reinforcing its fundamental role in the global marketplace.
“This expanded RCF demonstrates the UAE financial sector’s robust confidence in BGN’s strategic role within the region’s energy trading complex. The flexible terms and innovative structure of this facility provide a welcome addition to our diversified international liquidity base,” added Bayegan.
Bayegan also reiterated BGN’s commitment to further strengthening financial partnerships in the GCC, and in other regions, to empower its global business expansion and trading growth.
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Catalyzing trade finance solutions for economic growth
The expanded facility reflects the UAE’s oil and gas export strength, driven by the convening power and agile structuring spearheaded by ADEX and FAB. Abu Dhabi Commercial Bank (ADCB) also played a key role as Facility Agent for this collaboration, along with the National Bank of Fujairah, the Commercial Bank of Dubai, Mashreqbank, the Arab Bank, the National Bank of Ras Al Khaimah, Emirates NBD Bank and Ajman Bank.
To commemorate this milestone, a signing ceremony was held in Abu Dhabi. Khalil Al Mansoori, Director General of ADEX; Rüya Bayegan, Group CEO of BGN; and senior representatives of all banks involved formalized the agreement.
The oversubscription of the BGN lending facility highlights ADEX’s growing influence in catalyzing trade finance solutions that boost the UAE’s economy through coordinated local action, in close collaboration with banking partners. HFW, legal counsel for BGN, and Reed Smith, legal counsel for the lenders, advised the transaction.
