Oman Shipping Company (OSC) has taken a loan of $80 million from Abu Dhabi Islamic Bank (ADIB) to purchase an additional two massive vessels for its existing 53-strong fleet.
A subsidiary of the state-owned logistics firm Asyad Group, OSC has accrued $80 million (Dh293.6 million) in a bid to enlarge its fleet through a Sharia-compliant facility.The ADIB-funded Ijara facility will enable OSC to acquire two more massive crude carriers, thus bolstering its naval capabilities even further.
Established in 2003, Oman Shipping Company has an opportunity to salvage its debt situation by minimising the total monetary costs and eliminating the threats of refinancing.Last year, Oman Shipping Company had signed a deal with Standard Chartered for a $110 million refinancing facility to acquire three tankers and two VLCCs.
Christopher Phillips, head of ship financing at ADIB, said that the bank’s prowess in handling major shipping transactions in the Middle East has resulted in adding a great deal of value to its partners.
As the Islamic finance market is gaining traction, ADIB has accomplished over 15 important agreements in 2019 alone.By the virtue of being Abu Dhabi’s largest lender adhering to Sharia law, ADIB in 2013, started a dedicated financing unit to cater to structured shipping and other marine sectors.
The following year, it facilitated a Dh1.55 billion transaction for UAE-based Zakher Marine.