The Arab Petroleum Investments Corporation (APICORP), a multilateral development bank, has signed an agreement to provide a $61m loan to fund the construction of the Socar Aurora Fujairah Terminal (SAFT) in the UAE.
The loan is the first instalment of a $110m term loan facility.
The funding package will be used to construct the 641,000m3 oil terminal in the eastern port city of Fujairah.
The SAFT project is being delivered as a joint venture between Socar Trading, the international marketing, trading and development arm of the State Oil Company of the Azerbaijan Republic, Swiss-based commodity trading house Aurora Progress and the Government of Fujairah.
The UAE Government owns a 17% equity interest in APICORP, which was mandated as the sole arranger in May 2011 to secure the $110m term loan facility for the SAFT project.
The loan will be given in two tranches.
APICORP won the mandate from international banks following SAFT's detailed and rigorous selection process.
In partnership with the National Bank of Fujairah, APICORP will provide the first tranche loan.
APICORP chief executive and general manager Ahmed Bin Hamad Al-Nuaimi said that the finance package will add value to the development of Fujairah's oil logistics infrastructure.
"As part of its mission, APICORP seeks to support such vital oil and gas projects, especially at a time when international banks are withdrawing from the region," said Al-Nuaimi.
APICORP is owned by the ten member states of the Organization of Arab Petroleum Exporting Countries.