Dubai, UAE– Gulf Navigation Holding, a DFM listed maritime and shipping company, said Sunday it has repaid a loan of $2.7 million for one of its vessels.
The loan was financed by “Rasmala” with an interest rate of 12 percent.
Thus, after the mortgage has been released, the full proceeds of this vessel will pour into the company without any deductions, which enhances the company’s profitability and cash flow during the next short period, the firm said.
In a bid to reduce financing costs, the company said last August that it had refinanced five petrochemical tankers under new and preferential terms with a major Chinese lender.
The five-year refinancing agreement was signed at a low interest margin not exceeding 4 percent, which allowed the company to completely fulfill all its obligations to some lenders and reduce the total cost of borrowing.
The company said it was able to reduce financing costs by 40 percent compared to 2020 and expects premium costs to drop to 24 million dirhams by the end of 2022 from 35 million dirhams annually at the end of 2020.
The debt has also fallen to 294 million dirhams today, compared to 433 million dirhams at the end of 2020.