Saudi Arabia: Bahri’s Murabaha Agreement for Newbuild Cargo Vessels

The National Shipping Company of Saudi Arabia (Bahri) announced that the company will sign a Murabaha financing agreement with Public Investment Fund (PIF), yesterday, Tuesday 3rd July 2012 to finance part of the total construction cost of building two General Cargo vessels at Hyundai Mipo Dockyard (HMD) in South Korea.

The value of the financing contract is equivalent to Saudi Riyals 450 Mln (approx USD 120 Mln). The repayment will be made in equal quarterly installments over 10 years from delivery of vessels. The Contract will be signed by Mr. Abdullah Ibrahim Al-Eiyadhi, Acting General Secretary of PIF and Engr. Saleh Nasser Al-Jasser, Bahri CEO.

Engr. Al-Jasser indicated that these two vessels are part of the contract signed in March 2011 for the construction of six General Cargo vessels which will be received starting from early 2013 onward. Engr. Al-Jasser took the opportunity to extend his appreciation and gratitude to the Ministry of Finance and the Public Investment Fund for their continuous support to the company by participating in the financing of the implementation of its strategic plans.

[mappress]

Source: nscsa, July 4, 2012