Saudi Arabia’s National Chemical Carriers Company (NCC) has secured a financing deal to fund the purchase of up to four new vessels from two local banks.
The deal was signed on 20 June by Banque Saudi Fransi and Samba, with NCC, a subsidiary of The National Shipping Company of Saudi Arabia (NSCSA).
Under the terms of the loan, the banks will provide 10-year funding for the vessel purchases, split between two $43m tranches for two vessels recently delivered to the company, and a further $65m loan for a third ship currently under construction and due to be delivered to the company in 2013.
The facility includes the option for a further loan of similar size to finance a fourth vessel. The loans were denominated in Saudi riyals.
Bankers in the kingdom say they expect both NSCSA and NCC to follow the latest deal with further vessel financing transactions. NCC currently has eight vessels under construction in South Korea.
NCC said it received one new vessel on 15 June and the financial impact of the tanker’s delivery would appear in the company’s third quarter results. NCC is 80 per cent owned by NSCSA.