National Petroleum Services Group (NPS) has announced the completion of a USD 200 million refinancing arrangement with Arab Petroleum Investments Corporation (APICORP), HSBC, Emirates NBD and Al Hilal Bank. The refinancing was for a USD 150 million fixed rate Islamic facility and a working capital facility of USD 50 million.
In line with its five year growth strategy, NPS will use the refinancing to repay the company’s existing senior debt and working capital facilities, and to support long term equipment purchases and maintenance over the next three years.
NPS is the largest regionally-owned oil and gas provider in the Middle East delivering drilling, customised well services and support to customers across the Middle East, North Africa and Far East Asia. Its operations include well services, wireline logging, well testing, and integrated drilling. NPS employs around 1,500 people and operates in 12 countries.
The announcement marks another important milestone in NPS’s growth trajectory. In April 2014, the company was acquired by a consortium of investors led by sovereign-backed investment firm Fajr Capital, and comprising of APICORP, Waha Capital and other regional institutional investors.
Commenting on the deal, Adnan Ghabris, CEO of NPS Group, said: “Through this financing deal, NPS was seeking to raise additional resources to fund its continued growth. On the strength of its new shareholders and NPS’s financial track record, we were able to attract all major financiers in the region and are pleased to have concluded this facility with a club of financial institutions, which includes HSBC, Al Hilal, APICORP and Emirates NBD. The facility will fuel NPS’s growth over the next five years by providing secure long term financing at attractive rates and a flexible working capital facility.”