Qatar First Investment Bank’s (QFIB) portfolio company Emirates National Factory for Plastic Industries (ENPI) has signed a new five-year, 250mn UAE dinar syndicated Islamic finance facility arranged by Abu Dhabi Islamic Bank (ADIB).The financing will be used for the construction of a new production facility in Industrial City of Abu Dhabi 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 a dinar tranche and a dollar tranche - not only extends ENPI’s debt maturity profile but also reduces the overall cost of funding of the company, the UAE’s leading manufacturer of plastic packaging solutions, paper products and technologically advanced plastic cards.
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 khaliji, Ajman Bank, First Gulf Bank and Mubadala GE Capital, for which the transaction represented their first Islamic investment since inception.
“The over-subscription not only demonstrates the financial strength of ENPI, but also the growing confidence in the outlook for small and medium enterprises and the increased appetite across the region for Islamic finance,” said Emad Mansour, CEO of QFIB (pictured).
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 strengthen ENPI’s production platform as well as to solidify the company’s market position across the UAE.