SFS Cyprus and Kuwait Finance House launch shipping fund

Global Shariah Shipping Fund, jointly sponsored by Cyprus-listed SFS Group and Kuwait Finance House (Malaysia) and Global Shipping Investments Management Ltd (equally owned company by SFS and KFHAM), is being launched with the aim of raising $150 mln for the acquisition of offshore vessels and other types of ship.
Global Shipping Investments Management Ltd will be appointed as the General Partner to the Fund, which is being established as a limited partnership in the Cayman Islands.
The Fund, expected to commence in January 2010 will invest directly in shipping assets (with a preference for offshore ships), whilst all vessels will be chartered out on a long-term basis. The target fund size is set at USD 150mln, whilst the term of the fund will be seven years with up to three additional one-year extensions to allow for orderly liquidation of the Fund’s assets.