Al Eisa: It is the Largest Local Shipping Deal from one Single Bank
Samba Provides NCC SR 1470 Million Murabaha Term Facility
Mr. Eisa M. Al Eisa, Managing Director and CEO of Samba Financial Group signed an Agreement with Mr. Abdullah M. Al-Muhanna, CEO of the National Chemical Carrier (NCC) on Monday, December 10, 2007 (corresponding to Thul Qa'da 30, 1428H), by virtue of which Samba will provide NCC with Shariah compliant (Murabaha) term facility of USD 392 million (SR 1,470) million, representing 80% of the total cost for building 10 new chemical tankers (vessels).
Al Eisa expressed his delight on the occasion, pointing out that this is considered to be the largest single shipping deal in the history of the Local Market in terms of amount and number of ships by one Single Bank with a Single Borrower, which reflects our confidence in the borrowing Company and its credit worthiness.
Mr. Abdullah Al-Muhanna extends his thanks to Samba Financial Group for their support. "It is a continuation of our strong relations with the financial sector in general and Samba Financial Group in particular with which we had several previous transactions" says Al Muhanna, and added "this Agreement comes in line with our endeavors to avail of the Shariah compliant financing schemes and investments to support the Company's current and future expansions.
The confidence that is vested in our Company by the local and international banks and investment companies signifies the success of our strategy and plans, and help us to compete globally in shipping of petrochemicals".
"This deal comes within the framework of our plans to develop and expand the shipping capacity of our fleet, which is composed now of 14 vessels with a total capacity of 554,000 tons. We plan to increase it to 32 ships by 2011 with a total capacity of 1.4 million tons. We have 2 vessels under construction by Hyundai M., South Korea, and will be handed over to us early next year. Additionally, 16 new vessels have been contracted recently with SLS of South Korea, and will be delivered during 2009-2011 to help us meet the demand on our services and boost our supportive role of the national economy"; Al-Muhanna was quoted as saying.
Al Eisa ascertained the importance of the deal for Samba Financial Group in terms of reflecting the confidence of the national institutions in the Group as well as the Group's endeavors to support such institutions, the national economy and the Kingdom's people. The Group is a major supporter of the naval shipment sector in the Kingdom.
"Samba Financial Group proceeds with its prominent role in the local financial and banking industry through its ambitious strategy and global approach in developing its programs as well as its banking and financial products and services. Our facility programs are ranked number one in the local market as evident from our conventional and Shariah compliant deals, which won many accolades including the Banker's Best Deal of the Year for 3 years within the last 4 years.