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Abu Dhabi-based Al Seer Marine, a subsidiary of International Holding Company (IHC), has completed a AED495 million financing transaction for the construction of two very large gas carriers (VLGCs). The financing was arranged by Abu Dhabi Islamic Bank.
The deal was agreed and signed by ABGC, a joint venture between Al Seer Marine and BGN International, one of the world’s leading energy, trading, storage and transportation companies. ABGC has two new 86,000m3 VLGCs on order with Hyundai Heavy Industries in Korea. The first VLGC, Lucky Gas, is now under construction and is expected to be completed and delivered by March 2023. The second VLGC, named North Gas, is expected to commence steel cutting in May 2022 and be completed and delivered by June 2023.
Guy Neivens, Chief Executive Officer of Al Seer Marine, said, “This is an excellent result and leaves us well positioned for our next set of acquisitions. We are aiming to increase our fleet by acquiring a further 15 ships this year and having demonstrated consistent success in executing on attractive opportunities, we will seek out the right structure and financing to ensure the best equity returns for our shareholders, all the while managing the associated risk.”
Holman Fenwick Willan (HFW), a legal firm with a long history of representing owners on complex financing projects, acted on behalf of Al Seer Marine. HFW’s Tien Tai, partner in the transactional shipping group, commented: “This is one of the headline transactions in the Middle East region this year for new gas carriers and has attracted widespread interest from the banking community, many of whom have an interest in this strategically important sector.”
