Abu Dhabi Exports Office Expands Nine-Lender Finance Facility for Energy Trader BGN to Over $230 Million
The Abu Dhabi Exports Office (ADEX) and First Abu Dhabi Bank (FAB), leading a consortium of nine UAE lenders, have successfully expanded a financing facility for global energy trader BGN to $232.5 million. Initially set at $100 million with a target of $120 million, the facility was oversubscribed, marking a significant milestone in regional trade finance. The agreement introduces an innovative Murabaha tranche, allowing Islamic banks to participate alongside conventional financing.
The UAE's trade finance sector has evolved into a key enabler for global businesses, supporting companies like BGN in optimizing capital and driving long-term growth. In 2024, the UAE's trade levels reached a record $800 billion, with the energy sector playing a pivotal role. As one of the world's leading oil producers, the UAE derives approximately 30% of its GDP from the energy sector, with oil and gas exports accounting for nearly 13% of the country’s total export value.
The expansion of the financing facility reflects the UAE's strength in trade finance, underpinned by the structuring expertise of ADEX and FAB. Abu Dhabi Commercial Bank (ADCB) served as the Facility Agent, while the National Bank of Fujairah, the Commercial Bank of Dubai, Mashreqbank, the Arab Bank, the National Bank of Ras Al Khaimah, Emirates NBD Bank, and Ajman Bank participated as lenders.
A signing ceremony was held in Abu Dhabi to formalize the agreement, attended by Khalil Al Mansoori, Director General of ADEX; Rüya Bayegan, Group CEO of BGN; and senior representatives from all participating banks.
“This landmark cooperation, facilitated by ADEX, underscores the UAE’s leadership in designing financial frameworks that revolutionize international trade. By seamlessly integrating both conventional and Islamic banks into a single, innovative financing structure, ADEX is supporting the UAE's dynamic trade finance ecosystem, solidifying our nation's position as a competitive global hub for commerce. This alliance sets a new standard for cross-border financing, propelling the UAE to the forefront of the evolving financial landscape,” stated Al Mansoori.
Rüya Bayegan, Group CEO of BGN, added, “This expanded revolving credit facility demonstrates the UAE financial sector’s strong confidence in BGN’s strategic role within the region’s energy trading network. The flexible terms and innovative structure of this facility enhance our diversified international liquidity base. We remain committed to strengthening financial partnerships across the GCC and beyond, supporting our global business expansion and trading growth.”
The oversubscription of the BGN lending facility highlights ADEX's growing role in advancing trade finance solutions that bolster the UAE’s economy through strategic partnerships with financial institutions.
Legal counsel for BGN was provided by HFW, while Reed Smith acted as legal counsel for the lenders.
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