Hyundai Samho Shipping Company has been awarded a contract from The National Shipping Company of Saudi Arabia (Bahri) to build five oil tankers.

Hyundai Samho will construct a total of 10 Very Large Crude Carriers (VLCC) for Bahri. The South Korean group is already constructing five vessels under an agreement signed between the two companies in May 2015.

Bahri signed a SR1.43bn ($380m) Islamic financing agreement with Riyad Bank on 1 April to finance the construction of the crude carriers.

The vessels will be mortgaged to Riyad Bank as the essential collateral for the financing.

The five VLCCs contracted in the May 2015 agreement are expected to be delivered during 2017.

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