Al Seer Marine (ASM) said Wednesday that it completed a AED495 million ($134m) financing transaction for the construction of its two very large gas carriers (VLGCs).
The deal was agreed and signed by ABGC DMCC, the joint-venture firm of Al Seer Marine and BGN International, one of the world’s leading energy, trading, storage and transportation companies. The financing was arranged by Abu Dhabi Islamic Bank.
ABGC has two new VLGC’s on order with Hyundai Heavy Industries in Korea. The first VLGC, Lucky Gas, had its steel cutting ceremony on 21st March, and is expected to be completed and delivered by March 2023. The second VLGC, named North Gas, is expected to commence steel cutting in May 2022 and be completed and delivered by June 2023. Both ships are sized at 86,000 cubic metres capacity, and the propulsion machinery of each ship will be LPG fueled, making them environmentally friendly with less emissions.
Guy Neivens, Chief Executive Officer of Al Seer Marine, said, “We have now concluded our financing arrangements for our two VLGCs, strengthening our long-term liquidity and boosting our return on investment. This is an excellent result and leaves us well positioned for our next set of acquisitions.”
Holman Fenwick Willan (HFW), the legal firm with a long history of representing owners on complex financing projects, acted on behalf of Al Seer Marine.
Earlier in the year, Al Seer Marine launched its additive manufacturing business unit, leveraging the latest additive manufacturing technologies for the company’s in-house manufacturing of unmanned vessels and vehicles. The business unit will also develop large-scale additive manufacturing (LSAM) products and parts that are in high-demand regionally and globally.