Abu Dhabi, UAE: Al Seer Marine PJSC (ASM), a global player across multiple marine sectors and a subsidiary of International Holding Company (IHC), today announced that it completed a AED 495 million financing transaction for the construction of its two very large gas carriers (‘VLGCs’). The deal was agreed and 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. The financing was arranged by Abu Dhabi Islamic Bank PJSC.

ABGC has two new VLGC’s on order with Hyundai Heavy Industries in Korea. The first VLGC, Lucky Gas, had its steel cutting ceremony on 21 March and is expected to be completed and delivered by March 2023. 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 meters capacity and the propulsion machinery of each ship will be LPG fueled, making them environmentally friendly with less emissions.

Guy Neivens, Chief Executive Officer 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.”

Holman Fenwick Willan (HFW), the legal firm with a long history of representing owners on complex financing projects, acted on behalf of Al Seer Marine.

HFW’s Tien Tai, partner in the Transactional Shipping Group, remarked: “We are delighted to partner with Al Seer Marine in this transaction to provide them with the flexibility to take their business to the next level. This is one of the headline transactions in the Middle East region this year for new gas carriers and has attracted widespread interest from the banking community, many of whom have an interest in this strategically important sector.”     

Earlier in the year, Al Seer Marine launched its additive manufacturing business unit, leveraging the latest additive manufacturing technologies for the company’s in-house manufacturing of unmanned vessels and vehicles. The business unit will also develop large-scale additive manufacturing (LSAM) products and parts that are in high-demand regionally and globally. 

About Al Seer Marine:

Al Seer Marine (ASM), founded in 2003, is listed on ADX and a leader in marine services with 1 billion paid-in capital and over 1,200 employees. For its Full Year 2021 financial results, the company reported a net profit of AED 2.5 billion, driven by a significant rise in income from investments and acquisitions in support of its diversification strategy in the commercial maritime industry and new management and production services. It has a portfolio of services, including: management and training, construction of vessels, high-tech boatbuilding, unmanned systems development, and manufacturing. These are spread across its assets, namely: ASM Boat Building Sole Proprietorship, ASM Training Institute, and ASM Services Company. 

About BGN International:

BGN International is a global energy company which deals in trading, storage and transportation of petroleum, petrochemical products, and other commodities. BGN is one of the leading LPG suppliers globally today, operating hubs in Dubai, Geneva, Singapore, and Houston. 

About International Holding Company:

IHC was founded in 1998, as part of an initiative to diversify and grow non-oil business sectors in the UAE. Adhering to ‘Abu Dhabi’s Vision 2030’, the ADX listed company endeavours to implement sustainability, innovation, and economic diversification initiatives across what is now one of the region’s largest conglomerates with over 21,600 employees. IHC is included in FTSE ADX 15 Index (FADX 15), which represents the top 15 largest and most liquid companies on the ADX. 

IHC has a clear objective of enhancing its portfolio through acquisitions, strategic investments, and business combinations. Comprising more than 30 entities and 21,613 employees, IHC seeks to expand and diversify its holdings across a growing number of sectors, including Real Estate, Agriculture, Healthcare, Food and Beverage, Utilities, Industries, IT and Communications, Retail and Leisure, and Capital.

With a core strategy to enhance shareholder value and achieve growth, IHC drives operational synergies and maximizes cost efficiencies across all verticals – it also continues to evaluate investment opportunities through direct ownership and entering partnerships in the UAE and abroad. As the world changes, and new opportunities arise, IHC remains focused on resilience, innovation and redefining the marketplace for itself, its clients, and its partners.