The National Shipping Company of Saudi Arabia (Bahri) is planning to raise around USD 1 billion through the sale of a ten-year sukuk by the end of March, a company executive was reported as saying by the local news site Arabian Business.
The proceeds of the sale are planned for debt repayment and general business purposes, the official said.
In June 2014, Bahri merged with Vela, a subsidiary of the world’s largest producer and exporter of oil, Saudi Arabian Oil Company (Aramco), in a deal worth USD 1.3 billion.
The merger included transferring the whole fleet of Vela, consisting of 14 VLCCs used for floating storage and 5 refined petroleum product tankers, to Bahri.
Through the merger with Vela, Bahri became the sole provider of VLCC shipping services to Aramco, as well as the fourth largest VLCC operator in the world.