DIB to arrange US$530million Islamic tranche in project finance deal
Dubai Islamic Bank (DIB) gets lead arranger role for Islamic tranche in US$12 billion Qatar Gas II joint venture.
Dubai Islamic Bank has been mandated as one of the lead arrangers for the Islamic finance tranche of US$530 million for Qatar Gas II – a US$12 billion joint venture Liquid Natural Gas (LNG) project between Qatar Petroleum and Exxon Mobil Corporation.
The project will develop two trains for the liquid natural gas (LNG) supply from Qatar to United Kingdom.
Aref Kooheji, executive vice president of Investment and Corporate Banking at DIB, said: “Islamic financing is now an integral part of any significant fund raising effort in the region. Qatar Gas II is another important milestone for the Islamic finance industry.”
DIB has explicit proficiencies and investor relationships that are uniquely beneficial to its corporate customers. The successful closure of this financing reaffirms Qatar Petroleum’s faith and confidence in DIB’s ability to be one of the lead arrangers in such an important infrastructure financing deal.
The project was signed to facilitate the production and supply of LNG to the United Kingdom market thus utilizing the extensive natural gas reserves located in the state of Qatar’s offshore North Field.
The project involves the development of train two of the LNG project at Ras Laffan Industrial City, Qatar (including associated offshore facilities) for the production and supply of LNG, condensate, propane and butane. It also includes the development of an LNG re-gasification terminal at Milford Haven in South Wales along with the acquisition (either by ownership or chartering) of the LNG ships required for this trade.
The project is being implemented on a phased basis and train two will be executed approximately a year after the first LNG train.