Bahri secures SAR 1.4 bln murabaha from Riyad Bank

03/04/2016 Argaam

The National Shipping Co. of Saudi Arabia (Bahri) on Friday signed a murabaha facility worth SAR 1.42 billion with Riyad Bank to finance the construction of five very large crude carriers (VLCCs).

 

The tenure of the facility is for ten years and six months and includes a maximum two-year grace period, Bahri said in a statement to Tadawul.

 

A murabaha is a cost-plus-profit arrangement that conforms to Islamic finance standards. The vessels will be mortgaged to Riyad Bank as collateral for the financing.

 

In May, the ship builder had announced inking a contract with South Korea’s Hyundai Samho Heavy Industries to build five VLCCs with options on five more, according to the data available on Argaam.

 

Bahri became the sole oil shipper for Saudi Aramco after it bought Vela Marine International Ltd. from the oil giant in a deal completed in 2014. 

Comments {{getCommentCount()}}

Be the first to comment

{{Comments.indexOf(comment)+1}}
{{comment.FollowersCount}}
{{comment.CommenterComments}}
loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.

Most Read