Akij Shipping

pending

The proposed IFC investment of US$82 million debt will be to Akij Carriers Limited (ACL), Akij Sea Line Limited (ASL) and Akij Drybulk Limited (ADL) (collectively referred to as “Companies”), to finance purchase of 3-4 second-hand ultramax bulk carriers and will support the fleet renewal and expansion program of the companies (the “Project”). IFC investment will not be used to procure any new vessels or maintain the existing inland vessels. The companies are presently in the process of replacing the oldest vessels out of the existing fleet with second-hand ultramax bulk carriers, targeting improved fuel efficiency and lower emissions. These subsidiary companies also aspire to procure a couple of other energy-efficient second-hand ultramax bulk carriers & lighter inland vessels as part of its long-term renewal and expansion strategy; however, are not part of the Project. The Companies will be owning the ultramax carriers and are subsidiaries of Akij Resource Limited (ARL) (https://akijresource.com/), which is a large, diversified conglomerate based out of Bangladesh. Akij Shipping Line Limited. (“ASLL”) (https://akijshipping.com/), established in 2010 is a subsidiary and shipping business arm of ARL. ASLL, along with seven other entities including the Companies (collectively referred to as “Akij Shipping”) are based out of Bangladesh, Singapore & United Arab Emirates (UAE), specializing in the transportation of dry bulk cargoes mainly across Asia (Bay of Bengal, extending to Southeast Asian ports, including Singapore, Malaysia, Indonesia and Middle East) and Africa. ASLL currently manages the shipping operations including a mixed fleet of ARL subsidiaries owned (10 ocean-going dry bulk carriers under Bangladesh flag and 40 lighter vessels which are primarily used for inland and near-shore cargo transfer between mother vessels anchored off Chittagong port and also berthed and operated through Mongla Port and Narayanganj terminals) and chartered vessels. ASLL’s operations include operation of vessels (navigation, crewing, technical, safety management), office-based functions in Chattogram and Dhaka, and arrangements with third-party manning agents and service providers. ASLL manages all the operations related to managing vessels, Safety Management System (SMS), hiring of seafarers/manning (through 3rd party manning agencies) and chartering either directly or through its sister companies including Akij Shipping Line Pte Ltd. The manpower resources (related to shipping operations) in the ARL subsidiary companies are primarily seconded from ASLL and thus the Environmental and Social Management System (ESMS) related to shipping operations are currently being managed at ASLL level.