Subsidiary Bahri Dry Bulk signs agreement for Sharia-compliant funds from Bank Albilad
Bahri Dry Bulk, a business unit of Saudi-based logistics firm Bahri, has announced that it has secured a SR360 million ($96 million) Sharia-compliant loan from Bank Albilad to finance the purchase of four new bulk carriers.
The purchase is part of an agreement signed by the company in 2017 with Hyundai Mipo Dockyard (HMD), a member of Hyundai Heavy Industries (HHI) Group, the world’s largest shipbuilding company based in South Korea.
The credit facility, which will be paid over six months, and has a tenure of 13 years including a three-year grace period, will be used to finance 80 percent of the agreement.
The company said it has provided all the necessary guarantees for obtaining the loan, including a pledge of the four carriers upon delivery from the shipbuilding yard.
“We are pleased to collaborate with Bank Albilad to obtain this Sharia-compliant credit facility for purchasing the four carriers... to enable us to cater to the growing demand for the import of essential grains into Saudi Arabia,” said Ali Al-Harbi, CFO of Bahri.
Established in 2010 as a 60/40 joint venture between Bahri and Arabian Agricultural Services Company (ARASCO), Bahri Dry Bulk is a bulk carrier specialising in the transportation of grain, coal and other dry bulk cargoes.
The company currently owns and operates a fleet of five dry bulk vessels.