Bahri Dry Bulk, a business unit of Bahri, has announced that it has secured a Sharia-compliant funding of SAR 360 million (US $95-million) from Bank Albilad to finance the purchase of four new bulk carriers.
The move is the latest part of an agreement signed by the company in 2017 with Hyundai Mipo Dockyard (HMD), a member of Hyundai Heavy Industries (HHI) Group, the world’s largest shipbuilding company based in South Korea.
The 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 agreement concluded on 27 August last year, which is valued at around US $118-million.
The company has provided all the necessary guarantees for obtaining the loan, including a pledge of the four carriers upon delivery from the shipbuilding yard.
“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,” said Ali Al-Harbi, CFO of Bahri.
“It also makes us proud that the financing deal with Bank Albilad, which is known for its initiatives to support the Kingdom’s business development and economic growth, contributes toward the concerted efforts made by different sectors in the country to help meet its wide-ranging needs and further cement its pre-eminent position as a global economic powerhouse,” added Al-Harbi.
“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… with the addition of four new carriers to our fleet, we will be fully equipped to cater to the increasing demand for essential grains, such as barley, wheat, and corn, in the country,” said Nezar Banabeela, president of Bahri Dry Bulk.
Established in 2010 as a 60/40 joint venture between Bahri and Arabian Agricultural Services Company (ARASCO), Bahri Dry Bulk is a leading bulk carrier in Saudi Arabia specialising in the transportation of grain, coal and other dry bulk cargoes.
The company currently owns and operates a state-of-the-art, large capacity, fuel-efficient fleet of five dry bulk vessels.