Business Bureau, Gulf Today

The Abu Dhabi Islamic Bank (ADIB), a leading financial institution, has signed an agreement to provide a $80 million Shariah-compliant Ijara facility to Oman Shipping Company (OSC), a member of the ASYAD Group, for the financing of two VLCC (Very Large Crude Carriers) tankers within the OSC group.

The transaction represents OSC’s first Sharia based leasing “Ijarah”, as well as ADIB’s ongoing commitment and ability to finance significant assets in the marine and energy sectors.

Christopher Phillips, Head of Ship Finance at ADIB, said: “ADIB has significant experience and expertise working on Middle East shipping deals across the full range of industry segments. Over the years we have been able to add significant value to partners across a wide range of innovative structures in terms of both bilateral and syndicated facilities. Completing this transaction with OSC is a testament to the hard work our team and we are well-positioned to build on our track record in this specialised business in order to assist our clients in 2020 and beyond.”

Michael Jorgensen, Chief Financial Officer and Acting Chief Executive Officer at OSC, added: “It was important for us to find a trusted partner for our first Sharia-compliant Ijara facility. ADIB’s team were able to provide a competitive Ijara facility which served our needs, allowing us to finance two VLCC tankers and further support our expansion plans.”

Founded in 2003, OSC is today an international full-scale shipping company having a well-diversified fleet of 53 modern vessels (owned and chartered-in) and is a leader in shipping transportation services. The company’s business investments and growth strategy are closely aligned with the strategic maritime transportation interests of the Sultanate’s rapidly industrialising economy.