Ta’ziz gets USD 2 bn for its methanol plant

Local and international players alike are still pouring bns into the UAE’s megaprojects, with the latest push coming for a major new methanol plant in Ruwais Industrial City. Ta’ziz Methanol, the joint venture between Abu Dhabi’s industrial powerhouse Ta’ziz and Swiss-headquartered Proman, reached USD 2 bn in financial close on their methanol plant in Ruwais Industrial City, state news agency Wam reports.

The transaction drew heavy oversubscription from a pool of 11 regional and international lenders across Europe and Asia. It comprises a five-year conventional syndicated loan of USD 1.9 bn and an Islamic financing tranche worth USD 200 mn.

The financing comes at a time when the UAE is doubling down on its petrochemicals industry, with T’aziz just a day before also exploring a AED 10 bn investment to produce new chemicals, including styrene and polystyrene. Earlier this week, it also locked in USD 28.5 bn in long-term sales, feedstock, and offtake agreements spanning methanol, caustic soda, and polyvinyl chloride, alongside a USD 5 bn+ gas supply agreement with Adnoc Gas. Ta’ziz’s total chemicals production is set to rise to 4.7 mtpa by 2028 from the 17 sq km Al Ruwais facility.

Who’s involved? The group is led by Abu Dhabi Commercial Bank and First Abu Dhabi Bank, who served as the joint bookrunners. They are joined by local and regional heavyweights including Abu Dhabi Islamic Bank, Emirates Development Bank, our friends at Mashreq, and the National Bank of Kuwait. International banks include Sumitomo Mitsui Banking Corporation, which also acted as the exclusive financial advisor, alongside European and Asian lenders Banco Bilbao Vizcaya Argentaria, DBS Bank, and ING Bank. Completing the lineup is The Arab Energy Fund.

ADVISORS- Sumitomo Mitsui Banking Corporation was the exclusive financial advisor for the deal, while Abu Dhabi Commercial Bank and First Abu Dhabi Bank served as bookrunners and authorized lead arrangers, providing the largest financing commitments.