United Arab Shipping Company (UASC) has announced concluding a bilateral facility worth $190 million with Burgan Bank'sCorporate Banking Group to finance the acquisition of two 14,000 TEU vessels from among UASC's new building order of seventeen vessels comprised of eleven 14,000 TEU vessels and six 18,000 TEU vessels.
UASC has ordered these ultra large container ships from Hyundai Heavy Industries Co. Ltd. (Hyundai) shipyard in South Korea. The giant box-ships, which are state of the art vessels capable of running on conventional fuel and liquefied natural gas ("LNG"), are scheduled for delivery starting in fourth quarter of 2014.
Basil Al Zaid, Chief Financial Officer of UASC, commented on the transaction, "Our established strategic relationship with Burgan Bank, further cemented through this transaction, demonstrates the close co-operation between UASC and Burgan Bank. As the UASC vision is 'Linking the Middle East to the World' we appreciate Burgan Bank for supporting this facility. Burgan Bank has showed strong support for the project from the initial stages working alongside other stakeholders to ensure the successful implementation of UASC's financial strategy and expansion plans to offer comprehensive and cost competitive shipping solutions to clients worldwide."
Jorn Hinge, UASC President & Chief Executive Officer, also remarked, "In an environment where fuel oil remains the largest cost driver in the industry, our cutting-edge vessel designs have been developed with a clear focus on improving cost efficiency and enhancing environmental friendliness. We are first-movers with these 'Green' newbuildings that will be equipped for LNG duel fuel for the first time in the long haul container trades."
Mr. Raed Al-Haqhaq, Burgan Bank's Chief Banking Officer - Senior General Manager, commented, "We at Burgan Bank are committed to support a reliable partner such as UASC on their growth journey. Burgan Bank's corporate banking group continues to expand its finance deals with its corporate clients to support them in executing their strategic plans at every stage of the business cycle."