Abu Dhabi's Al Seer Marine completes Dhs495m financing deal for VLGCs Abu Dhabi's Al Seer Marine completes Dhs495m financing deal for VLGCs
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Abu Dhabi’s Al Seer Marine completes Dhs495m financing deal for VLGCs

Abu Dhabi’s Al Seer Marine completes Dhs495m financing deal for VLGCs

The funds will be used by Al Seer Marine to construct two VLGCs that have a capacity of 86,000 cubic metres, with LPG-fuelled propulsion machinery

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UAE’s Al Seer Marine has wrapped up a Dhs495m financing transaction for the construction of its two very large gas carriers (VLGCs). The deal was 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. Abu Dhabi Islamic Bank arranging the financing.

ABGC has two new VLGCs on order with Hyundai Heavy Industries in Korea. The first VLGC, Lucky Gas, had its steel cutting ceremony on March 21 and is expected to be completed and delivered by March 2023.

Read: UAE’s Al Seer Marine commences work on its first ‘very large gas carrier

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 fuelled, making them environmentally friendly with less emissions.

Long-term liquidity

Guy Neivens, CEO 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. We are aiming to increase our fleet by acquiring a further 15 ships this year and having demonstrated consistent success in executing on attractive opportunities, we will seek out the right structure and financing to ensure the best equity returns for our shareholders, all the while managing the associated risk.”

Earlier in the year, the company launched its additive manufacturing business unit, leveraging the latest additive manufacturing technologies for the company’s in-house manufacturing of unmanned vessels and vehicles.

In other recent news, the company announced a sizeable investment of 375 million equity shares (Dhs1.2bn) in the AD Ports Group allocated ahead of its IPO. With this investment, the company now owns 7.36 per cent of Abu Dhabi Ports.

Read: Abu Dhabi-based Al Seer Marine invests Dhs1.2bn in AD Ports Group

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