(MENAFN - Arab News) Qatar Shipping SPC, a wholly owned subsidiary of Milaha (Qatar Navigation), has secured a 10-year 110 million (QR 400 million) ship financing facility with QNB Group.
Proceeds from the facility will be utilized by Qatar Shipping to fund the ongoing construction of 19 harbor assistance vessels. The vessels will be deployed in Mesaieed Port on a 20-year, QR 1.8 billion contract, signed with Qatar Petroleum in 2011.
The financing was arranged by Milaha Capital, another Milaha subsidiary, which provides corporate finance advisory services to the group as part of its mandate.
Milaha's President and CEO Khalifa bin Ali Al-Hetmi and Abdulla Mubarak Al-Khalifa, general manager corporate banking from QNB Group, signed the financing deal.
Senior executives from Milaha, its subsidiaries and QNB were also present.
Al-Hetmi said: "This is the second ship financing agreement signed this year as part of a series of financing arrangements the company has been planning for 2012. Debt financing is key to funding our growth plans and we at Milaha recognize this facility with a leading bank like QNB as a token of trust in the company's solid foundations, performance, and strong future prospects.
We are very pleased to be able to build on our long-standing and extensive relationship with QNB across a number of our business units".
Abdulla Mubarak Al-Khalifa said QNB enjoys a long standing strategic business relationship with Milaha and proud to be the financing bank for this significant acquisition.
This relationship came to emphasize the importance of QNB Group's role in supporting and building the economy and it's contribution to the development plans and investment of Qatar and to promote efficiency through the diversity of projects funded by the Group.
"This milestone agreement also makes the QNB Group a major and reliable source of financing development projects and a major base to improve the communities in all sectors."