Riyadh – Mubasher: National Shipping Company of Saudi Arabia (Bahri) announced signing SAR 360 million ($96 million) Islamic loan agreement for its subsidiary Bahri Dry Bulk LLC with Bank Albilad.

Bahri Dry Bulk LLC is a 60% unit of Bahri.

The facility will be allocated to finance 80% of the cost to build four bulk carriers by Hyundai Heavy Industries, according to a statement on Sunday to the Saudi Stock Exchange (Tadawul).

The financing will last for 13 years that include three-year grace period and the value will be paid in semi-annual instalments.

The guarantee was mortgaging the vessels to the bank as collateral.

In August, Bahri’s subsidiary signed contracts with Hyundai Heavy Industries to build four bulk carriers at a total value of $120 million.

Bahri’s stock weighed down 0.03%, closing Sunday at SAR 31.84.