Thursday, Dec 17, 2009

DOW JONES NEWSWIRES

The Global Shariah Shipping Fund, a fund backed by Shariah compliant financing that aims to invest directly in shipping assets, will be launched in January, its proponents said Thursday. try{document.write(_banner_zone('zone9339')); }catch(e){}

The fund, targeted to be $150 million in size, will have a term of seven years from first closing, with up to three additional one-year extensions to allow for orderly liquidation of the fund's assets, KFH Asset Management Sdn, Kuwait Finance House (Malaysia) Berhad, and SFS Group public Company Ltd. said in a statement.

Cayman-based Global Shipping Investments Management Ltd., owned by SFS and KFHAM, will be appointed as the general partner to the Fund.

"All vessels will be chartered out on a long-term basis to top league charterers. It will particularly target high quality and modern vessels with a preference for offshore ships such as offshore supply vessels and platform supply vessels," said KFH Asset management Chairman Khairil Anuar Abdullah.

"We believe that our timing of launch and opening of the investment period in 2010 will be good due to the mismatch between the market price and the fair value of vessels at the time of acquisition," said SFS Group Vice-Chairman & CFO philip Larkos. "We are already witnessing a continuous good deal flow in what has been a buyer's market with attractive cash on cash returns."

-By Ditas Lopez, Dow Jones Newswires; +65-6415-4044; ditas.lopez@dowjones.com

(END) Dow Jones Newswires

17-12-09 0806GMT