Saudis Investing $1.5b in VLCCs

Saudis Investing $1.5b in VLCCsSaudis Investing $1.5b in VLCCs

National Shipping Company of Saudi Arabia (Bahri) said on Sunday it signed a deal with Arab Petroleum Investments Corp. (Apicorp) to launch a $1.5 billion investment fund that could buy up to 15 very large crude carriers, known as VLCCs. The fund will be seeded with $500 million on three occasions, subject to conditions, Bahri said in a bourse statement, adding that it will subscribe to 15% of the fund's capital, Trade Arabia reported. Apicorp will provide the remaining 85%, and will be the manager for the fund and responsible for arranging finance, Bahri said. Bahri, in return, will be the technical and commercial manager for the fleet of tankers owned by the fund. The two parties expect to complete the remaining processes and undertake the first phase of fundraising at the end of the third quarter of 2016. Bahri also said it expects the financial impact of the first phase to appear in the first quarter of 2017.