ABN AMRO closes innovative ship finance transaction in Saudi Arabia

HUTA will apply the CSD, which will have a building period of three years, in the rapidly growing local off-shore construction and dredging market.

The transaction includes a unique co-operation between ABN AMRO, Saudi Hollandi Bank (SHB) and Atradius DSB. The financing structure, whereby asset based finance, ship finance and Atradius DSB credit insurance are being combined, is the first of its kind in the region.

Sheikh Saleh Bin Laden, Chairman of the Board of Directors of Huta Marine Works said:
"We are glad for the strong commitment and support demonstrated by Saudi Hollandi Bank and ABN AMRO in concluding this financing arrangement, which represents an important milestone in the development of our company."

Hajo Cijfer, Head of ABN AMRO Cross Border Structured Finance in theNetherlands said: "With this transaction ABN AMRO demonstrated its capabilities of structuring complex transactions in the Middle East area, building on the existing relationships with SHB and HUTA. One of the key success factors in this transaction was HUTA's professional attitude towards international financing."

The USD102 million facility covers a/o 85% of the CSD value and 100% of Interest During Construction (IDC). Atradius DSB (the Dutch ECA) provides partial commercial risk cover whereas the balance of the risk is assumed by SHB. ABN AMRO is sole Lender, Security Trustee and Facility- and ECA-Agent.

ABN AMRO and Saudi Hollandi Bank have been represented in the transaction by the renowned law office of King & Spalding LLP who deployed their offices in Dubai, London and Riyadh to the transaction. HUTA were represented by the renowned law offices of Reed Smith Richard Butler operating from their London office.