Aegean Marine fixes new $120m loan for Fujairah oil terminal

The facility was arranged by the United Arab Bank, and funded by the United Arab Bank, Abu Dhabi Commercial Bank, Commercial Bank of Dubai, and the National Bank of Oman.

E. Nikolas Tavlarios, president of Aegean, commented: “With this new facility, we have established more favorable terms with lower margin and longer maturity dates than our 2013 Fujairah Credit Facility, further enhancing our financial flexibility.

“Our Fujairah storage facility has been received well in the marketplace and we quickly achieved a high utilization rate driven by our strong marketing strategy and the valuable support of our local banking group.”

Proceeds from the loan, which was secured at lower rates and with a longer tenor than the company's existing 2013 Fujairah Credit Facility, were used to repay the indebtedness currently outstanding on that facility of $45.2m.

The balance of proceeds are expected to be used to opportunistically purchase supply while pursuing Aegean's strategy of selling blended products to generate greater profitability, the company announced.