ADEX, Mashreq and ADCB to provide up to $100 million in financing to BGN

Strategic collaboration aims to enhance UAE's position in global energy market
ADEX, Mashreq and ADCB to provide up to $100 million in financing to BGN
ADEX aims to enhance the UAE's position in the global energy and commodities market (Image source: WAM)

Abu Dhabi Exports Office (ADEX), in partnership with Mashreq and Abu Dhabi Commercial Bank (ADCB), has recently completed a $100 million financing arrangement with BGN, a global energy and commodities trading company. The collaboration aims to bolster the export of energy commodities from the UAE.

This syndicated financing arrangement, structured as a revolving credit line, incorporates an accordion feature. This enables regional banks and their overseas affiliates to contribute additional funding as needed. Such flexibility is crucial in facilitating the smooth export of energy commodities, ensuring that BGN can meet evolving market demands effectively.

Khalil Al Mansoori, acting director-general of ADEX; Rüya Bayegan, group CEO of BGN; Asif Karmally, executive head of international corporate banking at ADCB; and Joel Van Dusen, senior executive vice president, and group head of corporate and investment banking group of Mashreq Bank, signed the agreement.

UAE’s export sector

Mohamed Saif Al Suwaidi, director-general of Abu Dhabi Fund For Development (ADFD), highlighted the role this initiative plays in strengthening the UAE’s export sector. Through collaborative efforts and partnering with local banks, the UAE supports local businesses in their expansion efforts worldwide. “ADEX believes in partnering with banks and other financial institutions towards a common goal, which is rooted in the understanding that collective efforts produce results. Our collaboration with BGN is part of our endeavor to create opportunities for establishments that contribute significantly to our national economy,” he added. Moreover, he highlighted the potential of the UAE’s advanced energy sector. He stated that expansion in energy export volumes can significantly boost the economy.

Meanwhile, Abdulla Al Shamsi, group chief business officer at ADCB, highlighted the bank’s pride in facilitating UAE’s commodity exports globally. He emphasized ADCB’s growing commodity franchise and its dedication to deepening partnerships with organizations like ADEX to bolster the UAE’s export sector.

BGN’s financing needs

For his part, Yannick Luce, chief financial officer of BGN, said, “As BGN continues to grow and diversify its trading activity across various commodity classes and geographies, so our financing needs will continue to expand and evolve.” Therefore, the financing deal will complement the company’s existing strong liquidity base and healthy banking relationships across the region.

Meanwhile, Joel Van Dusen expressed Mashreq’s support for BGN’s expansion in the UAE. Van Dusen emphasized the strategic importance of the financing package in advancing the UAE’s economic diversification goals.

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ADEX’s mission

This strategic collaboration signifies a significant step forward in ADEX’s mission to enhance the UAE’s position in the global energy and commodities market. By fostering partnerships, ADEX will drive economic growth. Moreover, it will strengthen the UAE’s role as a global leader in trade, energy, and commodities.

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