Bahri secures SAR 2.8B Murabaha facility from Alinma Bank

The National Shipping Company of Saudi Arabia (Bahri) signed a Murabaha financing agreement with Alinma Bank for $756 million (SAR 2.835 billion), according to a statement to Tadawul.

The 10-year facility is guaranteed by mortgaging the purchased very large crude carriers (VLCCs).

The financing will be used to fund approximately 70% of the value for acquiring nine VLCCs, which was announced on the Saudi Exchange (Tadawul) website on August 20, 2024.

Abdulmalek Al-Hogail, Bahri’s board member and Chairman of Alinma Bank, has an indirect interest in the deal.

Bahri signed an agreement, on Aug. 19, with Capital Maritime & Trading Corp. to acquire nine VLCCs for approximately SAR 3.75 billion ($1 billion). This purchase was part of Bahri’s strategy to modernize its fleet, data compiled by Argaam showed.