Saudi Arabia’s national shipping carrier, Bahri, through its subsidiary Bahri Dry Bulk, announced that it has secured a Sharia-compliant funding of SAR 360 million from Bank Albilad, in order to finance the purchase of four new bulk carriers.
This is part of an agreement signed by Bahri in 2017 with Hyundai Mipo Dockyard (HMD).
The credit facility will be used to finance 80% of the agreement, which was concluded on 27 August last year. Bahri has also provided all the necessary guarantees for obtaining the loan, including a pledge of the four carriers upon delivery from the shipbuilding yard.
“It 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,” Ali Al-Harbi, CFO of Bahri, noted.
From his part, Nezar Banabeela, President of Bahri Dry Bulk, commented that “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 and play a key role in supporting the Kingdom in achieving the national goals and strategic directions of the government. 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, such as barley, wheat, and corn, in the country.”
