Bahri Dry Bulk, a joint venture between Saudi Arabian shipping firm Bahri and Arabian Agricultural Services Company (ARASCO), has secured Sharia-compliant funding of SAR360m ($96m) from compatriot Bank Albilad.
The fund will be used to finance the company’s four newbuild bulk carriers ordered at South Korean yard Hyundai Mipo Dockyard last year.
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% of the contract value.
“The new funding from Bank Albilad is a major milestone for Bahri Dry Bulk as we are keen on expanding our business into new markets in the region and globally, to explore new horizons of growth and play a key role in supporting the Kingdom in achieving the national goals and strategic directions of the government. Moreover, with the addition of four new carriers to our fleet, we will be fully equipped to cater to the increasing demand for essential grains, such as barley, wheat, and corn, in the country,” commented Nezar Banabeela, President of Bahri Dry Bulk.
Bahri Dry Bulk mainly operates in grain and coal and currently owns a fleet of five dry bulk carriers.