Saudi Shipper Bahri Plans $1 Billion Financing Round, Open to Acquisitions

By Tom Arnold

DUBAI, March 4 (Reuters) – National Shipping Company of Saudi Arabia (Bahri) plans to promote ten-year sukuk price 3.9 billion riyals ($1.04 billion) by the tip of March to repay debt and for normal enterprise functions, an organization government stated on Wednesday.

Bahri grew to become the only real supplier of very giant crude provider (VLCC) crude oil delivery providers to Saudi Aramco after it bought the marine unit of the oil large in a deal first introduced in 2012 however which was accomplished final yr.

The buy of Vela made Bahri the world’s fourth-largest proprietor of VLCCs and was backed by shares in itself and a 3.18 billion riyal bridge mortgage, which it stated final June would get replaced by long-term, sharia-compliant financing inside 12 months.

The financing appears set to be its debut sukuk problem, with the agency selecting HSBC Saudi Arabia, JP Morgan and Samba Capital, the funding banking arm of Samba Financial Group, to rearrange the transaction, Mohammad Alotaibi, vice chief government officer for finance, advised reporters on the sidelines of a marine convention in Dubai.

Bahri hopes to get a greater rate of interest on the sukuk than it has been paying for the bridge mortgage, which was agreed in February 2013 with the three banks and signed in June 2014, Alotaibi stated, declining to supply extra particulars.

He added that the corporate was open to extra acquisitions sooner or later.

“We are reviewing our strategy. We are inclined more to acquiring ships (than other companies),” he stated, including that the dry bulk market had very low costs at the moment, which provided potential alternatives for patrons. ($1 = 3.7501 riyals) (Writing by David French; Editing by Andrew Torchia)