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05 January 2020
ISLAMIC BANKING

Oman Shipping Company receives $80 million financing facility

The Shari’ah compliant lender extended the Ijarah financing facility to Oman Shipping Company (OSC) for two crude ship carriers.

ADIB's Dubai-Al Hamdan Street branch/Abu Dhabi Islamic Bank

by Kudakwashe Muzoriwa

Abu Dhabi Islamic Bank (ADIB) has signed an $80 million Ijarah financing facility with Oman’s OSC to acquire two large crude carriers.

The Shari’ah compliant financing facility will allow the shipping company to reduce overall financing costs and eliminate refinancing risk while continuing to diversify its pool of financial partners.

Christopher Phillips, the Head of Ship Finance at ADIB, said that ADIB has significant experience and expertise working on Middle East shipping deals across the full range of industry segments.

In September 2019, OSC Oman secured a $110 million financing facility from Standard Chartered to acquire three tanker vessels and two large crude carriers.

The financing facility from Standard Chartered Bank is expected to help the shipping company to explore opportunities to expand its offering as well as support OSC’s growing customer base and connect them to global markets through its full-service fleet.

“It was important for us to find a trusted partner for our first Shari’ah-compliant Ijarah facility,” said Michael Jorgensen, OSC’s Chief Financial Officer and Acting Chief Executive Officer.


RELATED STORIES: Oman Shipping Company Ijarah Abu Dhabi Islamic Bank Shari’ah-compliant Standard Chartered


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