ADCB to finance USD 40 million for Horizon Djibouti Terminals Ltd

5 November 2004

ADCB has signed a USD40 million (Dhs 147 million) project finance deal with Horizon Djibouti Terminals Ltd SAZF. The loan will be used to build a Bulk Liquid Storage Terminalling facility at Doraleh village, which is 10 kilometres from Djibouti Port, strategically located on the Red Sea. Horizon Djibouti Terminals Ltd SAFZ is promoted and managed by Horizon Terminals Ltd, which belongs to ENOC. As one of the core banks for ENOC as well as its group companies including EPPCO and Gulf Energy Maritime, ADCB has enjoyed a long term and established partnership with ENOC spanning several years. 'The move into Djibouti is all about implementing our strategy of becoming a global player in the international terminalling arena.' said Yusr H. Sultan, Chief Executive, Shipping, Terminalling & LPG, ENOC. 'We view Djibouti as a gateway to the wider Horn of Africa.' Construction on the HDTL terminalling facility is in progress and will be completed by June 2005. Project costs are approximately US$ 58 million (Dhs 213 million) of which ADCB is funding 70% and is the sole financier. 'ADCB is a bank with a long heritage in creating project finance deals. In particular we are a dominant player in the oil sector, shipping, civil aviation, chemicals and the LPG industry. We have been able to combine our knowledge and experience in these fields to pull together this loan for Horizon Djibouti Terminals Ltd SAZF,' said Ahmed Saleh Al Banna, Senior Vice President, Corporate Division (Dubai and Northern Emirates), ADCB. The terminal will be designed for storage and handling of Jet A1, Mogas, Kerosene, Diesel, Fuel Oil, pressurised mixed LPG, chemicals and edible oils. Catering to the growing demand for storage facilities in Djibouti, the terminal will be strategically located on the Red Sea which provides the key to vast potential of land locked markets including Ethiopia and will facilitate supplies to East Africa and additional neighbouring countries around the Horn of Africa. 'We are extremely excited about this deal and the fact that our loan will provide Djibouti with the facilities it requires to serve the growing demand of both its own country and those that it neighbours,' added Al Banna. When complete the terminalling facility will provide capacity for approximately 230,600 cbm of petroleum products, 7,700 cbm for easy chemicals and vegetables oils and LPG with a storage capacity of around 1,200 cbm. The project is being managed under the supervision of Group E&C of ENOC and is being co-promoted by ENOC, Independent Petroleum Group SAK in Kuwait, Essence Management Ltd, Boreh International FZE and the government of the Republic of Djibouti.