SHUAA Capital, the leading asset management and investment banking platform in the region, on Tuesday (14 June 2022) announced the funding of its leveraged buyout (LBO) financing facility for the acquisition of Allianz Marine and logistics Services Holding Limited (Allianz).
The announcement was made after securing a $160 million seven-year acquisition finance facility from National Bank of Fujairah (NBF) and Arab Petroleum Investments Corporation (APICORP), an energy-focused multilateral financial institution.
The facility is one of the largest Secured Overnight Funding Rate (SOFR) based facilities of its size for an LBO transaction in the region. Allianz’s financing is also one of the few corporate credit facilities in the Middle East with Term SOFR as benchmark pricing.
As part of the transaction, SHUAA also procured for its managed fund a seven-year IRS from NBF, opting to hedge the interest rate risk.
A leading maritime logistics player, Allianz operates the largest fleet of approximately 117 owned and chartered Offshore Supply Vessels (OSVs) in the Middle East, including a combination of Platform Supply Vessels (PSV), Anchor Handling Tug Supply vessels (AHTS), crew boats, accommodation barges, and flat barges. The company also provides full suite of maritime services such as vessel chartering, port logistics, and crew services to clients including leading international and national oil companies and offshore construction contractors.
Second Strategic Investment
The acquisition of Allianz is SHUAA managed fund’s second strategic investment in the OSV sector following the acquisition of Stanford Marine Group (“SMG”), a Dubai-based OSV operator and established player in the Middle East for over 20 years.
With the Allianz acquisition, SHUAA’s managed fund now includes the largest portfolio of 152 offshore supply vessels in the region and the fourth largest OSV fleet in the world. SHUAA expects the combination of two of the region’s leading OSV operators to deliver significant revenue and cost synergies and economies of scale on an annual basis.
Jassim Alseddiqi, Group Chief Executive Officer of SHUAA Capital, said: “We thank our banking partners NBF and APICORP for their continued support on this acquisition finance transaction. NBF and APICORP are at the forefront of supporting the growth of Energy and Shipping sectors in the Middle East, and this transaction is a testament of their commitment to the growth of regional champions.”
He further said: “The SOFR-based financing solution demonstrates our dynamism to quickly adapt to the evolving trends in the financing markets. We are also pleased to have secured the interest rate swap against the facility that provides us interest cost visibility and protection against rising rates. We look forward to working with all stakeholders to further develop SMG and Allianz businesses and contribute to the long-term growth of the offshore oil & gas industry in the region.”
Neill Robertson-Jones, Head of Corporate Banking at NBJ, said: “This is the second OSV deal that NBF’s Energy & Marine Segment, has signed with SHUAA. Not only is this a testament to the strong relationship we have built with SHUAA, but it also reflects our confidence in Allianz’s strengths to capitalize on growth opportunities in the offshore oil and gas sector, which is a priority sector for us.”
Nicolas Thevenot, Managing Director Corporate Banking at APICORP, said: “We are pleased to join with NBF in supporting SHUAA on this financing as part of our commitment to supporting the sustainable development of the MENA region’s energy sector through innovative financial solutions. Allianz’s high-quality asset base and the critical support it provides to the OSV sector in expanding offshore exploration and production activities in the region is a high-value addition to our growing portfolio of impact-driven investments.”