In a significant move to consolidate its position in the Asia Pacific region, leading financial partner of choice First Gulf Bank (FGB) announced that its International Business Division has recently signed an agreement worth USD 350 million with PT Asmin Koalindo Tuhup (AKT), one of Indonesia’s largest producers of Coking Coal.

This deal is one of the largest bilateral Pre-Export Financing Facility that FGB’s International Division has signed and follows a series of meetings, site visits and due diligence carried out between the two parties. It was signed in Jakarta between AKT and FGB Singapore Branch.

The loan amount from this deal will be used as a working capital facility to aid AKT with exporting Coking Coal to markets such as China, Japan, South Korea, Taiwan and India that have large steel manufacturing industries. Coking Coal, a premium variety of coal is an essential component required for the production of steel, and AKT with its mine in Tuhup, Central Kalimantan, is one of the largest producers of the same in Indonesia.

Talking about the significance of this deal, George Abraham, Head of Corporate Banking and a member of FGB’s International Credit Committee said: “The journey which began in 2007 when we established our first offshore office in Singapore has come a long way today. Asia-Pacific countries remain some of the biggest potential trade partners for Gulf States, and as the trade ties between both regions strengthen, this deal is a step in the right direction for FGB’s evolution in these foreign markets. We firmly believe in Asia’s fast paced growth and we are optimistic about being a part of this progress. Our International Business Division has been scoping likely partnerships in the region for a while, especially in the trade and commodities segment, and we saw a lot of potential in AKT.”

He added: “Our Singapore branch has been at the forefront of this deal, which saw us competing with a number of other global financial institutions and we are glad to have emerged as the partner of choice for AKT.”

FGB set up its Asian presence with a representative office in Singapore 2007, which became a full-fledged wholesale banking branch by 2009. Today, FGB’s International Banking Division is looking to aggressively grow in the Asian markets and is all set to open 4 new branches Hong Kong, South Korea, China and Indonesia.

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