Bahri, the national shipping company of Saudi Arabia, has completed $263 million (equivalent to 986.3 million Saudi Riyals) in unsecured financing through a deal with BNP Paribas and the National Bank of Greece. This action is recognized as the first international unsecured financing for this shipping group.
Financing Objectives
Bahri has stated that this deal aims to reduce reliance on asset-based debt and to expand relationships with international lenders. This move also signifies a shift in the group's financing management strategy away from focusing on individual assets. Details regarding the maturity date, pricing, or repayment plan for this financing have not been disclosed.
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Fleet Modernization Plans
This financing comes at a time when Bahri is implementing a comprehensive program to modernize and expand its fleet. The company set a new record at the end of June with 107 owned vessels and purchased five chemical tankers in the first half of the year while selling an old VLCC. Together with two vessels that were long-term leased, the group's operational fleet reached 109 vessels. Additionally, the backlog of new ship constructions for the company has reached 12 vessels, which are set to be delivered by 2030.
Recent and Future Financings
The recent financing is seen as a different financing avenue compared to Bahri's previous transactions, which were primarily based on fleet assets. In 2024, this Saudi company secured $756 million in financing from Alinma Bank to fund part of the $1 billion purchase of nine VLCCs from Capital Maritime & Trading, controlled by Evangelos Marinakis. With the completion of this purchase of nine vessels, Bahri's VLCC fleet reached 50 vessels, and the company continues to invest in tankers, dry bulk, and general cargo.
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