United Arab Shipping Company has concluded a bilateral facility worth US$ 190 million with Burgan Bank’s Corporate Banking Group to finance the acquisition of two 14 000 TEU vessels. These vessels will be selected from UASC's new building order of seventeen vessels, which comprise of eleven 14 000 TEU vessels and six 18 000 TEU vessels.
UASC has ordered the ultra large container ships from Hyundai Heavy Industries’ shipyard in South Korea. The giant box-ships, which are capable of running on conventional fuel and liquefied natural gas (LNG), are scheduled for delivery in Q4 2014.
Basil Al Zaid, Chief Financial Officer of UASC
“Our established strategic relationship with Burgan Bank, further cemented through this transaction, demonstrates the close co-operation between UASC and Burgan Bank. As the UASC vision is ‘Linking the Middle East to the World’ we appreciate Burgan Bank for supporting this facility. Burgan Bank has showed strong support for the project from the initial stages working alongside other stakeholders to ensure the successful implementation of UASC’s financial strategy and expansion plans to offer comprehensive and cost competitive shipping solutions to clients worldwide.”
Jorn Hinge, UASC President and CEO
“In an environment where fuel oil remains the largest cost driver in the industry, our cutting-edge vessel designs have been developed with a clear focus on improving cost efficiency and enhancing environmental friendliness. We are first-movers with these ‘Green’ newbuildings that will be equipped for LNG dual fuel for the first time in the long haul container trades.”
Raed Al-Haqhaq, Burgan Bank’s Chief Banking Officer – Senior General Manager
“We at Burgan Bank are committed to support a reliable partner such as UASC on their growth journey. Burgan Bank’s corporate banking group continues to expand its finance deals with its corporate clients to support them in executing their strategic plans at every stage of the business cycle.”
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/lng-shipping/27052014/uasc_financing_for_dual_fuel_vessels_661/