GMMOS unit secures financing for 12 vessels

GMMOS Group subsidiary Stanford Charter has secured a $46 million (Dh169m) joint eight-year financing facility from Standard Chartered Bank and Noor Islamic Bank for the construction and purchase of 12 offshore service vessels.

Dubai-based GMMOS is a major regional oil and gas services and industrial group operating in the Gulf and Caspian markets. It is jointly owned by Abraaj Capital and Waha Capital.

This Shariah-compliant facility has been arranged to finance GMMOS's current and future vessel acquisition programme.

"We are very impressed with both banks' capabilities in structuring and executing this transaction," said GMMOS CEO Elias Nassif.

"The facility meets our current ship financing requirements. This is our first experience with Islamic financing and it opens a new avenue for our future financing needs."

Al Waha Maritime, a subsidiary of Waha Capital, last month bought a 49 per cent stake in GMMOS following an agreement with private equity firm Abraaj Capital.

Al Waha Maritime acquired 40 per cent from investors and the remaining nine per cent from Abraaj Buyout Fund II.

Arif Naqvi, Vice-Chairman and CEO of Abraaj Capital, said GMMOS was uniquely positioned to meet the needs of companies active in offshore exploration and development in the Gulf and Caspian regions.