Kuwaiti shipping fund launched

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Dubai: SFS Group Public Co Ltd and Kuwait Finance House Labuan (KFHL) will jointly establish a Shariah compliant shipping fund with a target fund size of US$150m by year-end, local media reported. SFS Group and KFHL, a wholly owned subsidiary of Kuwait Finance House have signed a joint venture agreement to set-up the fund via a limited partnership in the Cayman Islands.
The companies said in a joint statement on Tuesday that the fund would be managed by an equally-owned company acting as the general partner based there.
The shipping fund’s objective will be to invest directly in shipping assets and primarily in vessels to be chartered out on a long-term basis to top league charterers.
The term of the fund will be seven years from first closing with up to three additional one-year extensions.  [06/05/09]