Milaha unit secures QR1.55bn ship financing

Al Deebel on voyage. Qatar Shipping - which was merged into Milaha in 2009 - owns and operates a fleet of LPG and LNG carriers providing first-class services to a wide range of clients, including major international energy and industrial companies.

Qatar Shipping, a subsidiary of Milaha, has secured a 12-year $425mn (QR1.55bn) fixed-term ship financing facility from a consortium of eight international banks.

The consortium banks are Bank of Tokyo Mitsubishi UFJ, Mizuho Bank, Sumitomo Mitsui Banking Corp Europe, Sumitomo Mitsui Trust Bank, Mitsubishi UFJ Trust and Banking Corp, Shinsei Bank, Development Bank of Japan and Standard Chartered Bank.

However, it could not be ascertained how much each bank pitched in the financing deal.

The proceeds from the facility will be utilised by all four joint venture partners to refinance existing debt facilities on four LNG (liquefied natural gas) vessels – “Fuwairit”, “Lusail”, “Al Thakhira” and “Al-Deebel”, said a spokesperson of Milaha (formerly Qatar Navigation).

The four vessels are owned by joint venture companies, wholly-owned by vessel sponsors: Qatar Shipping Company (the largest shareholder), Mitsui OSK Lines, Nippon Yusen Kabushiki Kaisha and Kawasaki Kisen Kaisha – all chartered to RasGas on a long-term basis.

Qatar Shipping - which was merged into Milaha in 2009 - owns and operates a fleet of LPG and LNG carriers providing first-class services to a wide range of clients, including major international energy and industrial companies.

Milaha has expanded and diversified into maritime transportation in gas, petroleum products, containers and bulk, offshore support services, port management, logistics services, shipyard, trading agencies, real estate, and asset management.

Qatar Shipping’s parent company recently bought back 0.8% of its total outstanding shares although its board of directors had earlier approved a share re-purchase of up to 5%.