Greece-based bunker company Aegean Marine Petroleum Network Inc. has entered into a new $120 million credit facility for its wholly-owned subsidiary, Aegean Oil Terminal Corporation arranged by local United Arab Emirates banks. “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,” said E. Nikolas Tavlarios, President of the Company .
Proceeds from the loan were used to repay the indebtedness currently outstanding on that facility of $45.2 million.
“The balance of proceeds are expected to be used to purchase supply while pursuing Aegean’s strategy of selling blended products to generate greater profitability,” Aegean said.
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.