DOHA: Qatar Gas Transport Company (Nakilat) has successfully closed $380 million of Islamic Murabaha financing with Qatar International Islamic Bank (QIIB) and Qatar Islamic Bank (QIB).
The joint arrangement is a big leap forward in enhancing co-operation between these two Islamic finance institutions, as the market demand for Shari’ah-compliant financial solutions continues to increase.
QIB provided $180 million of Nakilat’s financing tranche, with QIIB providing the remaining $200 million. The signing ceremony was held at QIB’s headquarters.
Muhammad Ghannam, Managing Director of Nakilat, emphasised that this financing underlines the strength of Nakilat’s position: “Nakilat’s $380 million Murabaha financing with QIIB and QIB once again proves Nakilat’s prime status in today’s financial market. Investors across the board appreciate Nakilat’s strength.
This refinancing will increase our financial flexibility. We’re also now better placed to pursue additional high-yield investment opportunities and maximise returns for our shareholders.”
Ghannam also expressed appreciation for the responsive and proficient approach of both QIIB and QIB: “QIIB and QIB worked very adeptly to close the financing in a very short period. Nakilat is embarking on a long-term relationship with QIB and QIIB. With our 54 LNG vessels, Nakilat holds a uniquely important and critical position in the Qatari LNG value chain.”
He also said: “Our company also plays a key role in the diversification of Qatar’s economy — Nakilat now manages its four LPG ships in-house and, in conjunction with our ship repair and construction joint venture companies, we continue to oversee the development of Erhama Bin Jaber Al Jalahma Shipyard in Ras Laffan. Thanks to this most recent financing, we have now taken a productive first step towards a long-term mutually beneficial relationship between the two premier Qatari Islamic banks and Nakilat.”
Explaining how Nakilat’s approach to financing has always been proactive and innovative, Ghannam said: “In 2009 we completed the award-winning $6.7 billion programme financing for our wholly owned subsidiary Nakilat, utilising commercial bank, export credit agency and bond market facilities. This $380 million Murabaha financing allows us to expand our sources to encompass Islamic facilities. Nakilat’s financial strength allows it to tap markets globally and across all types of financing sources.”
Having closed the Murabaha financing, Ghannam thanked Dr Al Sada, the Minister of Energy and Industry, and Hamad Rashid Al-Mohannadi, Chairman of the Board at Nakilat, for their strong support and excellent guidance, saying: “Support from Dr Al Sada and our Chairman Hamad Rashid Al-Mohannadi is a key factor in Nakilat’s accomplishments and success. We count on their ongoing support to continue to deliver outstanding results for our shareholders.”
In addition Ghannam expressed gratitude to all of Nakilat’s Board Members for their support, as well as to the employees and management of Nakilat and its subsidiaries.