Saudi Arabian state shipowner Bahri has fixed up an Islamic financing package to fund its $1bn acquisition of nine VLCCs.
The “landmark” murabaha financing agreement with Alinma Bank is worth $756m, the company said.
Bahri bought the tankers in August from Greek owner Evangelos Marinakis’ Capital Maritime & Trading.
The cash will support its fleet modernisation programme, the Saudi shipowner added.
Bahri chief financial officer Basil Abulhamayel and Jameel AlHamdan, head of corporate banking at Alinma Bank, signed the agreement.
Murabaha financing is an Islamic structure involving a "mark-up" element for assets in place of interest, which is not permitted in Islamic law.
The ships are intended to streamline the process of phasing out older vessels and further strengthen the buyer’s position in global tanker markets, Bahri explained.
Abulhamayel said: “The enhanced financial capabilities from this collaboration will fuel our efforts to improve our overall fleet competitiveness that will lead to enhancing the company’s revenues and profitability, aligning with our long-term strategic goals.”
The tankers involved in the transaction were not named individually by Bahri. However, it said the scrubber-fitted vessels were built in South Korea and have an average age of 5.9 years.
Capital Maritime & Trading’s website lists a fleet of 11 VLCCs on the water, built between 2010 and 2022. It also has six VLCC newbuildings on order for delivery in 2027.
TradeWinds has previously identified which vessels will join Bahri in what was the biggest VLCC deal this year.
The deal makes Bahri the second-largest VLCC fleet owner on the water, with 49 ships, behind China Merchants Group, which has 52 of the tankers, according to Clarksons’ data.
