Dubai Shipowner Weighs Share Sale, Islamic Bonds in ExpansionBy and
Gulf Navigation seeking funds to double or triple fleet: CEO
Expansion planned after settlement with foreign banks
Gulf Navigation Holding PJSC may sell shares or Islamic bonds as the Dubai-based shipowner plans to seek funds to double or triple its fleet of oil and chemical ships, Chief Executive Officer Khamis Juma Buamim said.
The company wants to acquire chemical and product tankers as well as offshore support vessels, after it agreed last month to settle historical liabilities, Buamim said in a Bloomberg TV interview. Gulf Navigation currently owns eight chemical tankers and four crew boats, according to its website.
“We need to double our fleet or triple our fleet by 2020,” Buamim said. The company could sell shares or issue short-term Islamic bonds, or sukuk, to fund the growth, he said. “Most of the legacy issues are sorted out or about to be finalized.”
Gulf Navigation reached a settlement with DVB Bank SE, BNP Paribas SA and DNB ASA over liabilities dating back to 2014, the company said in a statement on Feb. 19. It said earlier that the settlement should improve investor confidence and widen market interest in Gulf Navigation. The company has started studying an expansion of operations including ship-building and repairs in the northern parts of the United Arab Emirates, together with two Chinese shipbuilders.
— With assistance by Hussein Slim, and Desley Humphrey