APICORP and Bahri to launch $1.5bn shipping fund

The Fund's target is to acquire approximately 15 Very Large Crude Carriers (VLCCs) over three phases with total investments of up to $1.5bn composed of debt and equity

APICORP will invest 85% in the Fund with Bahri investing the remaining 15%.
APICORP will invest 85% in the Fund with Bahri investing the remaining 15%.

The Arab Petroleum Investments Corporation (APICORP) and The National Shipping Company of Saudi Arabia (Bahri) have announced the launch of a landmark shipping fund.

An agreement to establish the APICORP Bahri Oil Shipping Fund (ABOSF) between APICORP and Bahri was formally signed at a ceremony held in Riyadh on July 17, in the presence of Khalid Al-Falih, Minister of Energy, Industry and Mineral Resources for the Kingdom of Saudi Arabia and chairman of Saudi Aramco.

The ceremony was attended by Dr Aabed Bin Abdulla Al Saadoun, chairman of APICORP and Abdulrahman Mohammed Al Mofadhi, chairman of Bahri, among other senior officials and advisors from both organisations.

The Fund’s target is to acquire approximately 15 Very Large Crude Carriers (VLCCs) over three phases with total investments of up to $1.5bn composed of debt and equity.

APICORP will be the main investor and fund manager, whilst Bahri will be the exclusive commercial and technical manager.
APICORP will invest 85% in the Fund with Bahri investing the remaining 15%.

The Fund will be a closed-end fund with a 10-years life period, and will deliver returns derived from the commercial employment of the VLCCs.

“We are delighted to be launching this fund in partnership with an esteemed organisation like Bahri, a leader in the shipping industry,” Al Saadoun, APICORP’s chairman said. “APICORP continues to support the transformation of the energy industry and seek to raise the profile, both locally and internationally, of the sector through such investments."

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