Gulf Navigation Refinances Five Petrochemical Tankers

Dubai-based shipowner Gulf Navigation announced it has completed the transaction of refinancing five petrochemical tankers, "under new and preferential terms". The tankers were refinanced by China's Jiangsu Financial Leasing Co. (JFL) under an agreement that extends to five years and reduces the company’s cost of finance by more than 40%.

Ali Abouda, Chief Financial Officer of Gulf Navigation Holding, said,” This agreement will establish a strong and prosperous relationship with our new partner, Jiangsu Financial Leasing Co, to which we are grateful for its distinguished support and belief in the company’s ability to grow and expand its operations in the coming years. We consider that our selection of outstanding partners has played a fundamental role in the company’s success and ability to continue moving forward on its path of corrective approach.”

According to the agreement, five petrochemical tankers are refinanced, with each tanker having a tonnage capacity of 46,000 DWT, and it is capable of transporting different types of liquids, including petrochemicals, oils, and oil derivatives, using zinc and epoxy coated tanks.

Abouda added, “Our signing of this agreement is a testament to the Company’s financial strength and its continuous ability and determination to strengthen its position as a regional leader in the transport of petrochemicals. The company will be able to use the new financing facilities to improve debt conditions, reduce the total cost of borrowing and avoid refinancing risks. This agreement will also assist in exploring opportunities that will enable the Company to expand the scope of its integrated shipping services locally and regionally”.