Saudi shipper Bahri, APICORP launch $1.5bn fund
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Saudi shipper Bahri, APICORP launch $1.5bn fund

Saudi shipper Bahri, APICORP launch $1.5bn fund

The investment fund could buy up to 15 very large crude carriers

Gulf Business

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

The fund will be seeded with $500m 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.


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