UAE: SDF announces $100mln supply chain financing to PT PAL through its Venture Debt Programme

UAE: SDF announces $100mln supply chain financing to PT PAL through its Venture Debt Programme

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

The funding will be executed in collaboration with Commercial Bank of Dubai (CBD) one of SDF venture debt programme partners.

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

Commenting on the signing of the agreements, Al Jaabari said, "The agreement between SDF and PT PAL is the first of its kind for our Venture Debt Programme which will see our Programme fund an international defence 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 strategic industries.”

Zeyana