By: Majed Al Shabeb
Riyadh – Mubasher: The deal signed by the Arab Petroleum Investments Corporation (APICORP) and the National Shipping Company of Saudi Arabia (Bahri) comes amid stock and oil market turbulences, said APICORP chairman Aabed Bin Abdulla Al Saadoun at a press conference late Sunday.
He added that the investment is important especially after increased demand on oil and infrastructure support in this sector.
On Sunday, Bahri and APICORP signed an agreement to establish an SAR 5.6 billion ($1.5 billion) investment fund.
The fund aims to acquire of 15 Very Large Crude Carriers (VLCCs) over three phases with total investments of $1.5 billion, composed of debt and equity.
APICORP will invest 85% in the fund, while Bahri will invest the remaining 15%.
The fund10-year closed-end fund will deliver returns derived from the commercial employment of the VLCCs, according to the statement.
“Bahri is committed to upholding its leadership position in the Kingdom of Saudi Arabia. APICORP and Bahri have developed a unique structure that assists Bahri in increasing its VLCC fleet. This will also make Bahri the biggest VLCCs operator in the international VLCC market segment,” said Bahri chairman Abdulrahman Mohammed Al Mofadhi.
He pointed out that the deal falls in line with the Kingdom’s Vision 2030, as it will create employment opportunities and support economic growth. It will also enhance the maritime sector awareness in the country.
Translated by: Sara Ghali
