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PLAN TO BUY 15 VLCCs

The investment fund could buy up to 15 VLCCs

Saudi shipper Bahri, Apicorp launch $1.5bn fund

DUBAI, July 17, 2016

National Shipping Company of Saudi Arabia (Bahri) said on Sunday it signed a deal with Arab Petroleum Investments Corp. (Apicorp) to launch a $1.5 billion investment fund that could buy up to 15 very large crude carriers (VLCCs).

The fund will be seeded with $500 million on three occasions, subject to conditions, Bahri said in a bourse statement, adding that it will subscribe to 15 per cent of the fund's capital.

Apicorp will provide the remaining 85 per cent, and will be the manager for the fund and responsible for arranging finance, Bahri said.

Bahri, in return, will be the technical and commercial manager for the fleet of tankers owned by the fund.

The two parties expect to complete the remaining processes and undertake the first phase of fundraising at the end of the third quarter of 2016.

Bahri also said it expects the financial impact of the first phase to appear in the first quarter of 2017.-Reuters




Tags: Apicorp | fund | Crude carrier | bahri | Saudi shipper |

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