National Shipping Company of Saudi Arabia’s (Bahri) subsidiary Bahri Dry Bulk has secured a funding of SAR 360 million (USD 96 million) from Bank Albilad to finance the purchase of four new bulk carriers.
The funding is part of an agreement for the construction of Bahri’s vessel quartet. The deal was signed between Bahri and Hyundai Mipo Dockyard (HMD), part of Hyundai Heavy Industries (HHI), in August 2017.
As explained, the Sharia-compliant credit facility, which will be paid over six months, and has a tenure of 13 years including a three-year grace period, will be used to finance 80% of the aforementioned deal.
“We are pleased to collaborate with Bank Albilad to obtain this Sharia-compliant credit facility for purchasing the four carriers, which we signed in the fourth quarter of 2017 with Hyundai Heavy Industries (HHI) group, to enable us to cater to the growing demand for the import of essential grains into KSA,” Ali Al-Harbi, CFO of Bahri, commented.
Nezar Banabeela, President of Bahri Dry Bulk, said: “The new funding from Bank Albilad is a major milestone for Bahri Dry Bulk as we are keen on expanding our business into new markets in the region and globally, to explore new horizons of growth… Moreover, with the addition of four new carriers to our fleet, we will be fully equipped to cater to the increasing demand for essential grains.”
Established in 2010, Bahri Dry Bulk is a 60/40 joint venture between Bahri and Arabian Agricultural Services Company (ARASCO). The company currently owns and operates a fleet of five dry bulk vessels.