Qatar First Investment Bank (“QFIB”) announces that its portfolio company Emirates National Factory For Plastic Industries L.L.C. (“ENPI”), the UAE’s leading manufacturer of plastic packaging solutions, paper products and technologically advanced plastic cards has signed a new five-year, AED 250 million syndicated Islamic facility, arranged by Abu Dhabi Islamic Bank (“ADIB”). The signing ceremony took place at Abu Dhabi Islamic Bank headquarters in Abu Dhabi.
The financing will be used for the construction of a new production facility in Industrial City of Abu Dhabi 1 (“ICAD 1”), the purchase of new machinery and equipment and the refinancing of a portion of the company’s existing conventional debt. The five-year facility, split into an AED tranche and a USD tranche, not only extends ENPI’s debt maturity profile but also reduces ENPI’s overall cost of funding.
ADIB acted as the Mandated Lead Arranger for the transaction which was oversubscribed by more than 30% reflecting the strength of ENPI’s credit. Participating banks included Al Hilal Bank, Al Khalij Commercial Bank (Al Khaleeji), Ajman Bank, First Gulf Bank and Mubadala GE Capital (“MGEC”). For MGEC the transaction represented their first Islamic investment since inception.
QFIB, ENPI’s majority shareholder, played an instrumental role in structuring this facility which will allow ENPI’s management further flexibility to realise its strategic objects. The facility enables ENPI to capitalise on the growing demand for plastic solutions regionally and internationally as well as to raise the profile of the developing industrial sector in the UAE. The proceeds will in part be used to expand and strengthen ENPI’s production platform as well as to solidify the company’s market position across the UAE and the broader region.
Nizar Rajoub, CEO of ENPI commented “We are grateful to QFIB for their expertise and valuable insight in assisting with structuring this Shari’ah-compliant facility. This new financing facility will provide us with the financial strength to deliver on our strategic plan to expand our manufacturing base across the GCC to meet the growing demand for our products. This will lead to considerable growth of our sales and allows us to strengthen our existing market position as a leader in the industry.
Emad Mansour, CEO of QFIB said: “We recognize the importance of developing the industrial sector as GCC countries embark on a drive to diversify their economies. Assisting ENPI with their expansion plans has given us deeper insights into the industrial sector. Furthermore, it has given us the opportunity to cement and broaden our relationship with a number of top-tier financial institutions across the UAE. The over-subscription not only demonstrates the financial strength of ENPI, but also the growing confidence in the outlook for SMEs and the increased appetite across the region for Islamic finance. QFIB is pleased to have assisted one of its portfolio companies with negotiating this long-term Islamic financing solution”.
QFIB is the first independent Shari’ah compliant investment bank in Qatar. It acquired ENPI in July 2009. Since then, QFIB has also been influential in accelerating ENPI’s development. Experienced board members and top management have been recruited in line with corporate governance best practices, ENPI’s information technology infrastructure is being developed and expansion plans into new markets are being progressed, especially in Saudi Arabia. QFIB continues to work closely with ENPI’s management as partners in order to maximise value for all stakeholders.