Commodities

First Shariah-compliant solution for a marine service provider

Macquarie's Shipping Finance team facilitated a $US58 million solution, enabling a marine service provider to optimise its cost of capital and re-focus on strategic growth objectives

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Sector	Commodities
Sub-sector	Shipping
Location	Middle East

Opportunity

A Middle East-based marine service provider, which owns, operates, and manages a sizeable fleet of offshore service vessels designed for the oil and gas market, sought to optimise its cost of capital by refinancing costlier debt.

The company was looking to refinance three anchor handling tug supply vessels, one platform supply vessel, and one bunkering vessel.

Approach

These vessels, originally designed by the company and built to the specifications of their client, serve oil producing assets in an offshore oil field in the region.

By familiarising themselves with the concentrated trading patterns of the ships, as well as the jurisdiction’s unique legal landscape and Shariah principles, Macquarie’s Shipping Finance team – part of Commodities and Global Markets – was able to support the client and refinance the five ships for $US57.5 million.

Outcome

The transaction enabled the client to maintain its competitive edge in the Middle Eastern oil and gas market by optimising its fleet's financial structure.

The Shipping Finance team’s successful structuring of its first Shariah-compliant facility ensured that the transaction adhered to Islamic financial principles, showcasing the team’s ability to navigate complex financial landscapes and deliver tailored solutions.

$US58 million

senior secured solution

5

vessels re-financed