National Shipping Company of Saudi Arabia (Bahri) has announced financing, via a Murabaha facility, for five VLCCs the company has on order at Hyundai Samho Heavy Industries.
The Islamic financing facility was secured with Riyad Bank and is valued at Saudi Riyals 1.425b ($380m). The financing period is 10.5 years and includes a 2 years grace period.
A murabaha is a cost-plus-profit arrangement which complies with Islamic finance standards.
The exclusive oil-shipper for Saudi Aramco last year signed a deal to buy five very large crude tankers from ship builders Hyundai Heavy Industries.