Ta’ziz closes $1.39bn financing for Ruwais projects, The National reports

Ta'ziz has closed AED5.1 billion ($1.39 billion) in financing for a terminal and an ammonia plant in Ruwais, Abu Dhabi, The National reported on November 4, citing a company statement. Ta'ziz said demand exceeded the financing sought for both projects.

The larger financing package went to the terminal, which secured more than AED3.41 billion, including AED826 million in Islamic financing. The ammonia project obtained more than AED1.69 billion. The two facilities have different roles: the terminal will handle chemical storage and exports, while the plant will produce ammonia.

ADNOC and Advario Star Energy are partners in the terminal venture. It is intended to serve as the main logistics gateway for the Ta'ziz Industrial Chemicals Zone, providing storage for liquid chemicals and facilities for their export.

Nine banks from the region and overseas participated in the terminal's long-term, non-recourse financing. MUFG advised on the transaction, according to the company's announcement.

The ammonia venture brings together Ta'ziz, Fertiglobe, Mitsui and GS Energy. Its planned capacity is one million tonnes a year, adding chemical production alongside the zone's storage and export infrastructure.

Its financing takes the form of a six-year term facility involving seven banks from China, Kuwait, Spain and Singapore. Sumitomo Mitsui Banking Corporation served as the sole financial adviser.

The ammonia project was further advanced in construction. The company reported that engineering, procurement and construction work assigned to Tecnimont was more than 90 percent complete, compared with about 70 percent for the terminal work awarded to Rotary Engineering.

The latest transactions follow financing for a third project, a methanol plant, secured in April. The National put that earlier package at $2 billion, separate from the $1.39 billion announced for the terminal and ammonia facilities.

Ta'ziz was formed in 2020 by ADNOC and ADQ, The National reported. The newspaper said the industrial zone's first phase is scheduled for completion at the end of 2028, with expected annual chemical output of 4.7 million tonnes, including low-carbon ammonia, methanol and PVC.