An Abu Dhabi Islamic Bank (ADIB) branch along Airport road in the UAE capital. Image Credit: Ahmed Kutty/Gulf News

Dubai: Abu Dhabi Islamic Bank (ADIB) announced it has signed an agreement to provide an $80-million Sharia-compliant financing facility to Oman Shipping Company.

The company will use the funds to finance two crude oil tankers to support its expansion plans. The deal represents Oman Shipping Company’s first Sharia-based leasing, and is also part of ADIB’s plans to finance significant assets in the marine and energy sectors.

The funds will also allow the shipping company to enhance its debt position by reducing overall financing costs while continuing to diversify its pool of financial partners.

ADIB said in a statement it is well-positioned to assist clients in specialised businesses in 2020. The bank in 2019 concluded over 15 major transactions across structured and syndicated finance, sukuk, and advisory products and services. In the Islamic capital markets specifically, ADIB acted as joint manager and bookrunner on a number of sukuk mandates including Majid Al Futtaim’s first green corporate sukuk.

Oman Shipping Company, which was founded in 2003, provides shipping transportation services and has a fleet of 53 vessels. The company’s investments and growth strategy are aligned with Oman’s plans for its maritime transportation industry.