UAE Business: Gulf Navigation completes $2.7m loan repayment – Gulf Digital News

UAE Business: Gulf Navigation completes $2.7m loan repayment – Gulf Digital News

Gulf Navigation Holding, a Dubai Financial Market-listed maritime and shipping company, has announced completing the repayment of a $2.7 million loan on one of its vessels.

The loan was financed by ‘Rasmala’ at an interest rate of 12%, a WAM report said. Thus, after the mortgage has been released, the full proceeds of this vessel will pour into the company without any deductions, which will enhance its profitability and cash flow.

This achievement comes as a continuation of the company's efforts to reduce financing costs, following an announcement made by it last August that it had refinanced five petrochemical tankers under a new and preferential terms with a major Chinese lender.

Low interest

The five-year refinancing agreement was signed at a low interest not exceeding 4%, which allowed the company to completely fulfil all its obligations to some lenders and reduce the total cost of borrowing.

The company further clarified that it was able to reduce financing costs by 40% compared to 2020. Furthermore, premium costs stood at AED35 million ($9.53 million) annually as at the end of 2020, and it is expected that this figure will be reduced to AED24 million by the end of 2022 and continue to go down to AED18 million