Venture Capital Bank announced the signing of a joint venture agreement with Lemissoler Shipping Group PCL in Cyprus. Under the agreement a Shipping company, Lemissoler Maritime Company W.L.L will be established in the Kingdom of Bahrain with the objective of acquiring, owning and operating a fleet of commercial vessels. The total value of the deal is $166m and will present a unique investment opportunity in the Shipping industry.
Lemissoler Maritime Company W.L.L. has started its operations by initially acquiring five specialized vessels that transport paper products, from the paper mills in Canada to the United State of America and South America, together with their long term charter agreement.
The Company has also identified among others eight container ships; that will be acquired in two phases during 2008 as an 'Expansion Fleet'.
These vessels will be on long-term charter contracts with companies that are in the league of ten largest container companies worldwide. All of the initial fleet vessels are registered with the Lloyd's Register, the leading maritime classification society and independent risk management organization.
The intention is that all vessels acquired by the Company, to be registered with a classification society member of IACS.
On this occasion, Mr. Abdullatif Mohammed Janahi, Board Member & Chief Executive Officer of Venture Capital Bank said:
'We have been considering investing in the shipping industry for a while. The shipping industry is considered the life blood of the global economy since is directly linked to the world's escalating trade activity, and it is responsible for the carriage of 90% of world trade. We are proud to offer this unique investment opportunity that is Shariah compliant to our investors who are expected that will get an annual dividend yield of 9% payable every six months and an internal rate of return of 24% at exit to investors'.
Mr. Janahi also added, 'We are pleased to announce this strategic partnership with Lemissoler Shipping Group PCL , which has a vast experience in shipping.
The Group's ship management subsidiary, Lemissoler Shipmanagement Ltd, was appointed as the Company's Operating Manager, in order to provide the necessary expertise and management, thus the Company will have full access to the services of an experienced management team in handling all the necessary technical, administrative and commercial services needed to operate its entire fleet efficiently and effectively'.
Mr. Philippos Philis, Board Member and Chief Executive Officer of Lemissoler Shipping Group PCL highlighted the importance of this agreement, by saying: 'our agreement with Venture Capital Bank to establish Lemissoler Maritime Company is the latest most important agreement our group has entered. He also added:' The Group selects its partners carefully, and with Venture Capital Bank's reputation and its extensive investments in the region, the Bank was the first choice for the Group to achieve our expansion strategy. Through this partnership, the Group will be able to expand its fleet of vessels under management by thirteen vessels starting with the five vessels that have been already acquired. It will also help us expand geographically by entering the Gulf region in order to respond to exceptional growth in the regional shipping industry driven by the large scale import/export traffic in a highly populated region'.
'The Group will provide full support to Lemissoler Maritime Company W.L.L. by offering our extensive expertise and track record in the project origination, development and management of shipping investments.' Mr. Philis added.
Lemissoler Maritime Company W.L.L. has started its operations by initially acquiring five specialized vessels that transport paper products, from the paper mills in Canada to the United State of America and South America, together with their long term charter agreement.
The Company has also identified among others eight container ships; that will be acquired in two phases during 2008 as an 'Expansion Fleet'.
These vessels will be on long-term charter contracts with companies that are in the league of ten largest container companies worldwide. All of the initial fleet vessels are registered with the Lloyd's Register, the leading maritime classification society and independent risk management organization.
The intention is that all vessels acquired by the Company, to be registered with a classification society member of IACS.
On this occasion, Mr. Abdullatif Mohammed Janahi, Board Member & Chief Executive Officer of Venture Capital Bank said:
'We have been considering investing in the shipping industry for a while. The shipping industry is considered the life blood of the global economy since is directly linked to the world's escalating trade activity, and it is responsible for the carriage of 90% of world trade. We are proud to offer this unique investment opportunity that is Shariah compliant to our investors who are expected that will get an annual dividend yield of 9% payable every six months and an internal rate of return of 24% at exit to investors'.
Mr. Janahi also added, 'We are pleased to announce this strategic partnership with Lemissoler Shipping Group PCL , which has a vast experience in shipping.
The Group's ship management subsidiary, Lemissoler Shipmanagement Ltd, was appointed as the Company's Operating Manager, in order to provide the necessary expertise and management, thus the Company will have full access to the services of an experienced management team in handling all the necessary technical, administrative and commercial services needed to operate its entire fleet efficiently and effectively'.
Mr. Philippos Philis, Board Member and Chief Executive Officer of Lemissoler Shipping Group PCL highlighted the importance of this agreement, by saying: 'our agreement with Venture Capital Bank to establish Lemissoler Maritime Company is the latest most important agreement our group has entered. He also added:' The Group selects its partners carefully, and with Venture Capital Bank's reputation and its extensive investments in the region, the Bank was the first choice for the Group to achieve our expansion strategy. Through this partnership, the Group will be able to expand its fleet of vessels under management by thirteen vessels starting with the five vessels that have been already acquired. It will also help us expand geographically by entering the Gulf region in order to respond to exceptional growth in the regional shipping industry driven by the large scale import/export traffic in a highly populated region'.
'The Group will provide full support to Lemissoler Maritime Company W.L.L. by offering our extensive expertise and track record in the project origination, development and management of shipping investments.' Mr. Philis added.