Offshore vessel owner and shipbuilder Stanford Marine Group (SMG) is aiming for a new phase of growth after adding to its financial firepower and replacing its board of directors.
The Dubai company said it has secured a loan of $45m from the National Bank of Fujairah (NBF), maturing over five years.
The cash will be used to capitalise on expansion opportunities arising in the offshore support vessel sector, as well as to optimise the capital structure.
The deal follows an AED 1.13bn ($308m) debt-buyout of SMG in January by Shuaa Capital.
SMG said it has made significant progress in its growth plans since then.
The new board of directors is led by Abu Dhabi National Energy Co vice chairman Saeed Al Hajeri as chair.
Experienced financiers Saleh Al Hashemi, Oliver Zoeger and Ajit Joshi have also been appointed.
The company said each brings a "wealth of expertise in business development, financing and corporate governance which will support SMG’s revitalised business as it seeks to execute on its growth ambitions".
Long relationship
NBF chief executive Vince Cook said: "As the lender of choice in the marine and offshore support vessel sector, NBF has been associated with SMG for over 20 years.
"We understand SMG's business model and recognise the company's potential to support the UAE's ambitions to become a shipping hub in the region."
The SMG fleet consists of 38 ships, including platform supply vessels and anchor-handling tug supply vessels.
The company has struggled since the collapse in oil prices in 2015, which led to a dramatic fall in chartering rates and a drying up of projects.
Its debt problems stemmed from a $325m Islamic loan provided by a group of banks six years ago, Reuters reported.
Shuaa Capital said in January that its buyout had helped save more than 1,800 jobs, and annual exports of close to $20m-worth of vessels built at SMG's Grandweld shipyard in Dubai.
Significant changes
"SMG has undergone a significant restructuring and I am delighted to be joining the board to lead the next phase in the company's development," Al Hajeri said.
"As a leader in the offshore support vessel sector, SMG is well placed to benefit from the opportunities for growth in the region and I look forward to helping the management deliver on SMG’s full potential."
Elias Nassif, founder and chief executive of SMG, said NBF's funds will be instrumental in expanding operations in the region.
