Dubai—Dentons has advised Abu Dhabi Islamic Bank as the arrangers on a US$135 million Islamic pre- and post-delivery financing for a joint venture company incorporated by Al Seer Marine Supplies and Equipment Company PJSC and BGN INT DMCC.

The financing is for the construction of two state-of-the-art very large gas carriers at Hyundai Heavy Industries. The vessels will be dual fuel-efficient, fully compliant with IMO regulations and should enjoy certain operational, economic and environmental efficiencies through their LPG engines. LPG engine technology is notable because it is a step towards zero-carbon propulsion of vessels and the shipping industry achieving its ambitious greenhouse gas emission reduction goals. The transaction completed on 31 March 2022.

Nathanial Armstrong, partner in Dentons' Banking and Finance team, commented, "This is another landmark ship financing for the Middle East on which Dentons is delighted to have acted as lead financiers' counsel. There have not been many "green" vessels commissioned by Middle East owners to date so this factor makes this a unique deal for this region in its own right. Hopefully this is a positive sign of things to come as the shipping industry moves in earnest towards trying to achieve the IMO's net zero 2050 target. This is a deal I think all parties can feel especially proud to have completed".

HFW acted for Al Seer Marine.

The Dentons team was led by Partner, Nathanial Armstrong (Abu Dhabi), with support from Associate Shaakir Daud (Dubai).

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