National Bank of Fujairah leads USD 100 mn syndicated loan for clinker plant

NBF closes USD 100 mn syndicated loan for UAE cement plant: The National Bank of Fujairah (NBF) finalized a single currency term and letter of credit syndicated loan with a value of USD 100 mn to finance Pure Cement's construction of a clinker production unit and waste heat recovery power plant in the UAE, according to a press release (pdf). The unit will produce 6.5k tons of clinker daily, while the plant will generate 8.5 MW of captive power.

Who’s in? NBF served as the arranger, facility, and security agent, leading the transaction alongside Emirates NBD and The National Bank of Ras Al Khaimah, which each contributed USD 25 mn to the syndicated facility.

Where will the funds go? The funds will go towards acquisitions of plant machinery, equipment, and other fixed assets. The project has a total cost of USD 135.9 mn.

What we know about Pure Cement: The UAE-based Pure Cement awarded Thyssenkrupp Industries India (tkII) a contract to design, engineer, and supply equipment for a clinker plant in Fujairah’s Al Tawyeen region in 2023. The project, handled by tkII’s Polysius Cement division, included raw material grinding systems and pyro processing technology, and marked Pure Cement’s entry into the cement sector.