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Etihad Credit Insurance, in collaboration with Abu Dhabi Exports Office, First Abu Dhabi Bank and Natixis sign first-of-a-kind financing deal to support Trafigura’s exports from the UAE

September 18, 2024: Etihad Credit Insurance (ECI), the UAE Federal export credit company, in collaboration with Abu Dhabi Exports Office (ADEX), First Abu Dhabi Bank (FAB), and Natixis Corporate and Investment Banking (Natixis CIB), signed a joint agreement to support Trafigura, a market leader in the global commodities industry, to expand their global acquisitions of non-hydrocarbon commodities originating from the UAE. The financing deal was announced during a signing ceremony between ECI and the relevant parties, which took place on September 17, 2024, at Rixos Marina Hotel, Abu Dhabi.

H.E. Mohamed Saif Al Suwaidi, Director General of ADFD and Chairman of the Exports Executive Committee of ADEX, said: “This collaboration is part of ADEX’s core mission to empower UAE businesses and enable them to expand their global footprint. Strategic partnerships between local and international banks – public and private – such as this one help us increase our national exports and strengthen the UAE’s role as a key player in international trade, in alignment with the UAE strategies and Visions. Our commitment remains focused on creating lasting economic value for our country while enabling our companies to compete and thrive on the world stage.”

H.E. Raja Al Mazrouei, CEO of Etihad Credit Insurance, stated, “It gives us great pleasure to facilitate this strategic alliance between Abu Dhabi Exports Office (ADEX), First Abu Dhabi Bank (FAB), and Natixis CIB to support Trafigura. This collaboration exemplifies the UAE's stable investment climate and effective focus on non-oil sectors. More importantly, we believe this association not only increases in-country value, but also strengthens the UAE's reputation as a trusted source of essential commodities on a global scale. The equitable participation of ADEX, FAB and Natixis CIB, in this transaction reflects ECI's vision of fostering collaboration, which lays the groundwork for a harmonious and mutually beneficial partnership.”

This collaboration highlights ECI's dedication to developing strategic alliances that boost the UAE's economy, increase the global visibility of its non-oil commodities, and solidify the UAE's standing as a hub for the same. It also demonstrates the commitment of Abu Dhabi Exports Office (ADEX), First Abu Dhabi Bank (FAB), and Natixis CIB, to supporting Trafigura in securing vital non-oil commodities such as metals and minerals from the UAE, further integrating the country's resources into international supply chains.

In line with the collaboration, Trafigura will receive a USD 150 million Revolving Credit Facility for two years to finance its acquisitions of non-hydrocarbon commodities originating from the UAE. These commodities are intended for export and re-export, thus cementing the UAE's position as a vital hub in global trade networks. This partnership between ADEX, FAB and Natixis CIB highlights the UAE’s stable investment climate and the strategic significance of its non-hydrocarbon sectors.

With Trafigura’s expertise in supplying its customers with metals, minerals and bulk commodities across the world, its choice to source from the UAE demonstrates both its dedication to the region and the nation's increasing significance as a supplier of quality, non-hydrocarbon resources. The company’s extensive global network, in-depth market knowledge, combined with its competence in managing complex supply chains, positions this initiative as a significant turning point in the UAE’s export landscape.

All lenders serve as the mandated lead arranger, with Natixis CIB acting as bookrunner, facility coordinator, facility agent, and ECA agent. This ensures that the interests of the participating banks are aligned, and aids in structuring and coordinating the financing. As a division of the Abu Dhabi Fund for Development, ADEX makes a substantial contribution by utilising its mandate to support exports from the UAE, thus amplifying the transaction's economic effect. Similarly, FAB's significant global and regional reach lends substantial financial stability and strength to the partnership, bolstering the team's collective efforts to assist Trafigura in its sourcing endeavours.

In addition to the strategic roles played by the financial institutions, Allen Overy Shearman Sterling (A&O) and Clyde & Co. also provided expert legal counsel for the new alliance. Their expertise helped to strengthen the foundation of the partnership, protecting the interests of all parties involved and ensuring the transaction's overall integrity.

Khalil Al Mansoori, Director General of ADEX, remarked: “The agreement is a continuation of our effort to expand the scope of partnerships, so we can further unify our initiatives to support and develop national exports by providing flexible and reliable financing. This partnership with National and international banks and other financial institutions aligns with UAE economic diversification goals and underscores our belief that united efforts lead to transformative success.”

Stephan Jansma, Trafigura Group Chief Financial Officer, stated, “We appreciate the significance of Etihad Credit Insurance’s convening power to bring together the Abu Dhabi Exports Office, First Abu Dhabi Bank and Natixis to deliver the first financing of its kind to a commodity trading company, supporting the UAE’s increasing significance as a producer of non-hydrocarbon resources.”

Natixis Corporate and Investment Banking DIFC Branch spokesperson, Barbara Riccardi, MD and Regional Head Middle East – Caucasus and Central Asia stated: “Natixis CIB is pleased to have played a key role in coordinating, structuring, and arranging this financing deal in support of Trafigura’s efforts to increase commodity purchases from the UAE, which also contributes to the UAE's strategic vision of expanding non-oil exports. We are proud to have been a trustworthy partner of ECI from the beginning, and our teams have developed a wealth of experience and expertise managing ECI covered loans. This financing further solidifies Natixis CIB’s position as a key global financial player to lead landmark transactions .”

Hana Al Rostamani, Group Chief Executive Officer of FAB, said: “FAB is the UAE’s global bank and we are uniquely positioned to support transactions that facilitate the development of the UAE’s international trade and investment landscape. As the largest bank in the country with an international network covering more than 60% of global GDP, FAB’s expertise and leadership in international trade finance, coupled with our financial strength, underpin our role in this important transaction that further boosts the UAE’s status as a global export hub for non-oil commodities.” 

By bringing these leading financial institutions together to assist Trafigura in sourcing commodities from the UAE, ECI has made significant advancements in the country's export capacities, thereby solidifying its position as a major player in international trade, while also fostering sustainable economic growth.