Tawazun Council agrees on $100mn supply chain funding to PT PAL

Tawazun Council agrees on $100mn supply chain funding to PT PAL

The Strategic Development Fund (SDF), the investment arm of UAE-based Tawazun Council, signed a funding agreement of $100 million through its Venture Debt Program with PT PAL, the Indonesian shipbuilder, to fund bank guarantee requirements for its 163 meter LPD Vessel that will be delivered to the UAE.

The funding will be executed in collaboration with the Commercial Bank of Dubai (CBD), one of SDF’s venture debt program partners.

The agreement took place in IDEX 2023 and was signed by Mr. Abdulla Naser Al Jaabari, Managing Director and Chief Executive Officer of SDF, and Dr. Kaharuddin Djenod, Chief Executive Officer of PT PAL Indonesia.

Mr. Abdulla Naser Al Jaabari, Managing Director and Chief Executive Officer of SDF, said that “The agreement between SDF and PT PAL is the first-of-its-kind for our Venture Debt Program which will see our Program fund an international defense contractor to support their delivery of a major contract to the UAE customers and which includes a requirement for PT PAL to have in country added value by providing major industrial work packages towards the UAE marine and defense industry companies, and support our mandate in leveraging our funding and investments to create economic impact and diversification towards the UAE’s