By Andy Sambidge
QNB facility will be used to fund construction of 19 harbour assistance vessels
Qatar Shipping, a subsidiary of Milaha (Qatar Navigation), said on Wednesday it has secured a ten-year $110m ship financing facility.
Proceeds from the facility with Qatar National Bank will be used by Qatar Shipping to fund the ongoing construction of 19 harbour assistance vessels.
The vessels will be deployed in Mesaieed Port on a 20-year, QR1.8bn contract, signed with Qatar Petroleum in 2011, the company said in a statement.
Khalifa bin Ali Al-Hetmi, Milaha's president and CEO, said: "This is the second ship financing agreement signed this year as part of a series of financing arrangements the company has been planning for 2012.
"Debt financing is key to funding our growth plans and we at Milaha recognise this facility with a leading bank like QNB as a token of trust in the company's solid foundations, performance, and strong future prospects."
Abdulla Mubarak Al Khalifa, general manager, Corporate Banking, QNB Group, added: "This milestone agreement also makes the QNB Group a major and reliable source of financing development projects and a major base to improve the communities in all sectors."