Barwa Bank signs vessel financing deal with Topaz Energy and Marine - IFN

Barwa Bank signs vessel financing deal with Topaz Energy and Marine

Daily Cover

GLOBAL: Qatar-based Shariah compliant Barwa Bank has contracted a US$125 million financing deal with Dubai’s Topaz Energy and Marine. The Islamic financing facility was procured to finance 12 of Topaz’s vessels operating in the Arabian Gulf and the Caspian Sea. Comprising two separate structures, the facility involves a US$110 million Ijarah-based financing scheme for 10 existing vessels and a US$15 million Istisnah-based deal for the purchase of two new vessels. Given the uniqueness of the asset class and the strategic importance of the industry, the transaction is considered to be a precedent for Barwa Bank. Steve Troop, the CEO of the bank, said: “The oil and gas services industry is experiencing robust growth. This deal is an important achievement for us financially and strategically to enhance the positioning of Barwa Bank as a choice for major local, regional and international companies.” The financial institution is keen to work closely with energy-related sectors to achieve its goal of becoming a universal banking group based in Qatar. Barwa Bank first tapped into the oil and gas industry when it teamed up with Qatar Islamic Bank to provide Maran Nakilat Company a US$662.4 million Murabahah financing facility. Maran Nakilat, a joint venture company between LNG shipping firm Nakilat and Maran Ventures, obtained the facility to expand its fleet and to allow Nakilat to increase its ownership in the venture. Topaz Energy and Marine is one of the leading oilfield services company that provides marine solutions to the global energy industry with a primary focus on the Middle East and the Caspian Sea. Commenting on the deal, René Kofod-Olsen, the CEO of Topaz, said that Barwa Bank’s venture bears testament to its steady cash-flows, earnings visibility and strong balance sheet. Established over 40 years ago, Topaz operates a fleet of more than 90 offshore support vessels and is a wholly-owned subsidiary of Renaissance Services, a publicly-traded company on the Muscat Securities Market in Oman.