Etihad Rail has announced it has secured financing of US$1.28 billion for Stage One in all its railway project, which comprises the route from Shah and Habshan to Ruwais.
Commenting at the completion of financing for the primary stage of the project, H.E. Nasser Alsowaidi, chairman of Etihad Rail said: “The securing of this loan not just represents the start of a brand new era for the UAE in trade and travel through a transportation network with the intention to connect all seven emirates with our GCC partners, but additionally reflects the international financial community’s confidence in Etihad Rail and the numerous potential of the UAE’s national railway.”
The five-year loan could be financed on a club deal basis by National Bank of Abu Dhabi PJSC, Bank of Tokyo-Mitsubishi UFJ, Abu Dhabi Commercial Bank and HSBC Bank Middle East Limited, with NBAD acting as both the power and security agent of the loan.
Initial financing plans for the primary stage of the project were originally approved by the United Arab Emirates’ Federal Cabinet in early 2012, and similarly authorised by the Abu Dhabi Executive Council.
Commenting on behalf of Etihad Rail, Nasser Saif Al Mansoori, chief executive of Etihad Rail said: “This loan is a further indicator of the numerous progress being made at Etihad Rail.
“With the new arrival of our wagons, the considerable headway being made in construction on Stage One, and as we glance forward to the advent of our locomotives later this quarter, Etihad Rail is on schedule to seeing the primary train run from Habshan to Ruwais by the tip of this year.
“We sit up for working with our banking partners as we develop this landmark project for the UAE, and appreciate the efforts of the Abu Dhabi National Oil Company and the substantial role the corporate played in helping to secure this loan.”
Stage Among the Etihad Rail network will extend 264 km from Shah and Habshan to Ruwais, facilitating a contemporary, safe, efficient and environmentally friendly means to move ADNOC ‘s shipments of granulated sulphur for export on the port of Ruwais.
Etihad Rail received its first shipment of wagons for Stage One in December last year, and can receive its first shipment of locomotives this quarter, while construction works at the route are well underway.
Upon completion, the UAE’s national railway network will span approximately 1,200 km around the Emirates, boosting economic growth by connecting key centres of industry and population, and sustaining trade and social development.
The Etihad Rail network can even form an essential component of the GCC railway network.
Recommended