The National Shipping Company of Saudi Arabia (Bahri) announced that its subsidiary Bahri Dry Bulk (owned 60% by Bahri and 40% by Arasco) signed with Bank Albilad on Wednesday, November 20, 2013, a Shariah compliant financing facility for SAR 420,000,000 (approx USD 112 million) to finance 70% of the cost of building 5 dry bulk vessels.
The financing facility is for a period of 11 years including a maximum of 1 year grace period. The 5 vessels will be mortgaged to Bank Albilad as collateral for the financing.
Bahri had announced on April 17, 2012, that Bahri Dry Bulk signed contract to build 5 dry bulk ships with one of the leading ship yards in Japan. These vessels have a capacity of 82,000 dwt and length of 229 meters, consume less fuel and are ecofriendly. The Company started its operation through chartering 5 vessels and chartering them out to Arasco which will be replaced by the delivered vessels. The first vessel will be delivered in the end of November 2013, while the remaining four in the first half of 2014.
Bahri, November 21, 2013