Meethaq Islamic Banking, a unit of Bank Muscat, and Oman Shipping Company (OSC) have signed a RO78 million ($202.4 million) agreement to refinance existing very large crude carriers (VLCCs).

The VLCCs, owned and operated by OSC, that will benefit from the refinancing are Marbat, Manah and Mazyonah, said the Oman Daily Observer report.

Tariq bin Mohammed bin Sultan al Junaidi, acting CEO of Oman Shipping Company, and Sulaiman al Harthy, group general manager of Islamic Banking, signed the financing agreement at a ceremony held in the head office of Bank Muscat, added the report.

Al Junaidi said that OSC is pleased to sign the financing facility with Meethaq Islamic Banking.

He added that the financing agreement comes within the scope of OSC’s strategy to broaden relations with local partners to achieve the highest value for the national economy.

He also noted that the successful closure of this business deal indicates availability of Sharia compliant financing facilities in Oman reducing the need to depend on external financing for major projects which will contribute significantly to the growth of the company and implementation of its business plans.

Al Harthy said that it is a significant milestone in the long-standing relationship between Meethaq and OSC.

He highlighted that the successful closure of the financing facility for OSC is a stepping stone for Meethaq to diversify its assets mix.

Al Harthy added that Meethaq is focused on playing a prominent supportive role in projects that are of national importance and the association with OSC will further strengthen this approach.