ADNOC inks financing deals with Abu Dhabi banks

ADNOC Distribution has signed two agreements with Union National Bank (UNK) and Abu Dhabi Commercial Bank (ADCB) under which the two banks will offer financing facilities to Emirati investors in the company’s latest fuel tanker leasing service. Under the recently launched service, ADNOC Distribution will lease tank trailers from individual Emirati investors under its community support initiative. As the two lenders extend loans to investors to purchase the fuel transport trucks, the company will bear the expenses of registration, insurance and maintenance during the contractual period. The company said in a press release today that the agreements boost joint public-private efforts to prod UAE citizens to invest in small and medium scale enterprises (SMEs). ADNOC Distribution General Manager Abdulla Al Dhaheri, who inked the deals with Ala’a Erekat, Chief Executive of ADCB, and Abdulla Al Rashedi, Senior Vice President and Head of Management Services Group, UNB, said negotiations were on to strike a similar with the National Bank of Abu Dhabi. He added that the fuel tanker leasing service had been in place since 1989 but the company had introduced some amendments to ensure best health, safety and quality standards. He affirmed the company’s commitment to partner with different economic sectors, specially finance, to advance community-driven services as part of its strategy to stimulate economic growth under the Abu Dhabi Economic Vision 2013.