Standard Chartered has sealed Oman's first sustainable refinancing in a deal involving two bulkers.
The financier is providing $35m to cover Oman Shipping's Chinese-built ultramaxes, the 63,500-dwt Jabal Shams and 63,000-dwt Jabal Al-Misht (both built 2019).
The deal is also the London and Hong Kong-listed lender's first sustainable shipping transaction in the Middle East.
The eight-year facility is linked to key targets in line with United Nations' sustainable development goals.
The credit margin under the facility will be adjusted based on Oman Shipping’s progress against these targets, the two sides said.
Oman Shipping chief executive Said Al Mawali said the deal would further "strengthen and increase its capacity".
"We are particularly pleased with the sustainability component of the agreement, a significant first for the Sultanate and the shipping industry in the region. We are determined to drive sustainability in our operations and supply chains, and we feel this agreement is aligned to who we are as a company," he added.
"As we continue to lead the direction of shipping regionally, we look forward to others following, by embracing more ethical financing agreements."
Second pioneering deal
Oman Shipping is a part of ASYAD Group.
The mixed fleet of 50 ships comprises VLCCs, VLOCs and LNG and LPG vessels, as well as smaller tankers and bulkers.
Three VLCCs are on order at DSME in South Korea for delivery this year and in 2021.
In January, the shipowner financed two more VLCCs in a breakthrough $80m deal.
Oman Shipping entered into a sharia-compliant "Ijara" leasing facility with Abu Dhabi Islamic Bank (ADIB).
That was its first such transaction.
The previous September, it banked $110m from Standard Chartered in a deal that saw it refinance two VLCCs and three other tankers.
"Standard Chartered are truly pleased to bring global best practice of sustainable finance to the Sultanate of Oman alongside our trusted partner, ASYAD," said Hussain bin Ghalib Al Yafai, chief executive of Standard Chartered Bank in Oman.
"Standard Chartered has served the Omani community, furthering their economic growth, for more than 50 years and we are proud to support their latest commitment to environmental protection."
Asyad Group brings together 16 government logistics companies and joint ventures under one entity. Its assets also include three ports and five airports.
