Global Environmental Management Services (Gems), a Saudi-based integrated waste management and industrial and engineering services, said it has successfully inked a SR300 million ($80 million) capital expenditure and working capital agreement through the Islamic banking format.

Arab Petroleum Investments Corporation (Apicorp) and Emirates NBD Capital Limited, part of Emirates NBD, a leading banking group in the Middle East, acted as mandated lead arrangers and joint co-ordinators, said a company statement.

Apicorp is also the structuring bank and investment and security agent and Emirates NBD Saudi is the account bank. The Dubai teams of Linklaters and Freshfields Bruckhaus Deringer acted respectively as lenders’ and borrower’s legal counsel.

On the deal, Wally Dahya, the managing director of Gems, said: "Today’s announcement demonstrates the strong commitment from leading financial institutions to support our exciting growth trajectory."

"This agreement provides Gems with an opportunity to continue our ambitious expansion plans in Saudi Arabia and create long-term value for our stakeholders. We are grateful to Apicorp and Emirates NBD for the support and confidence in Gems and our management team," he added.

Headquartered in Jeddah, Gems is a market leading provider of integrated waste management services, industrial and engineering services, by-product processing, logistics and transportation management.

The company provides a vital service in the recycling and environmentally responsible disposal of hazardous and complex waste, including toxic hydrocarbon waste, in an area requiring high technological capability.

Dahya said the financing will be utilised to fund the expansion of the group in the kingdom as well as satisfy its working capital requirements.

"The facilities have capital expenditure and working capital tranches with final maturities of six years from the signing date, he added.

Dr Raed Al Rayes, the deputy chief executive of Apicorp, said: "Although this transaction is not considered large in terms of size, we still view it as important and strategic in nature. It highlights Apicorp’s structuring capabilities and demonstrates our commitment to support the private sector."

"But what makes it special, is that we will contribute to a more environmentally sustainable hydrocarbon industry. Apicorp is proud that Gems and its shareholders chose to partner with us to arrange this facility jointly with Emirates NBD.  It is an example of how Apicorp brings value to its clients, partners, and the industry at large," he added.

Ahmed Al Qassim, the chief executive of Emirates NBD Capital, said this transaction goes a long way in demonstrating its commitment to the various sectors of the Saudi economy and eagerness to be part of the growth story.

"We value our relationship with Global Environmental Management Services LLC and its investors, and we look forward to future opportunities to deepen our relationship at all levels," he added.-TradeArabia News Service