National Shipping Company of Saudi Arabia (Bahri) said on Sunday it had signed a murabaha facility with Riyad Bank valued at 1.425 billion riyals ($380 million) to finance the construction cost of five very large crude carriers.

Bahri secures 1.43 bln riyal Islamic loan for five VLCCs

The facility lasts for a period of 10 years and six months, and includes a maximum two-year grace period, the firm known as Bahri said in the bourse statement.

A murabaha is a cost-plus-profit arrangement which complies with Islamic finance standards.

The exclusive oil-shipper for Saudi Aramco last year signed a deal to buy five very large crude tankers from ship builders Hyundai Heavy Industries. ($1 = 3.7500 riyals)

Source: Reuters