National Shipping Company of Saudi Arabia (Bahri) has signed a murabaha financing agreement with Alinma Bank for fleet modernization.

Under the terms of the agreement, Alinma Bank will extend a ten-year credit facility worth 2.835 billion riyals (US$756 million) to partially finance the purchase of nine state-of-the-art very large crude carriers (VLCCs).

Bahri says fleet modernization has always been a core focus of its strategy, and the process of phasing out older vessels is being streamlined.

The maritime transportation and logistics company is leveraging the kingdom's strategic location and actively expanding into new sectors and global markets.

"We are delighted to partner with Alinma Bank to finance one of our significant fleet modernization drives," says Bahri chief financial officer Basil Abulhamayel. "The enhanced financial capabilities from this collaboration will fuel our efforts to improve our overall fleet competitiveness that will lead to enhancing the company’s revenues and profitability, aligning with our long-term strategic goals."

"This collaboration aligns with our ongoing commitment to Vision 2030, and supports our strategic initiatives to enhance Alinma Bank’s position as the preferred financial partner for the public and private sectors," adds Jameel AlHamdan, head of the corporate banking group at Alinma Bank.

In August, Bahri signed a US$1 billion agreement with Greek firm Capital Maritime & Trading to acquire the nine VLCCs, most built in South Korea, and with an average age of around six years. They will all be delivered by the end of the first quarter of 2025.