Gulf Navigation planning to raise $250m through Islamic bond issue

Dubai-based shipper Gulf Navigation

Dubai-based shipper Gulf Navigation is planning to raise $250m (AED 918.2m) in capital through the issuance of Islamic bonds.

The sukuk will be issued via public offering, redeemable at a profit rate of less than 10% within five years, the company said in a statement on the Dubai stock exchange.

The proposal is set to be discussed at Gulf Navigation’s annual general meeting, which is scheduled for 19 April in Dubai.

The approval of its partnership with Polimar Turkish, announced in January, will also be on the docket for discussion.

Gulf Navigation recently announced healthy profits for 2016, aided by an improvement in spot rates and renegotiating debt repayments.