Hogan Lovells has advised the Arab Petroleum Investments Corporation (APICORP) and Tufton Oceanic in relation to the financing for and acquisition of, five medium range petroleum product tankers for APICORP Petroleum Shipping Fund.

The Shariah compliant Fund, established by APICORP and co-managed by Tufton Ocean, is the first investment fund to be established by APICORP and is also the first Fund in the Middle East aimed at a specific vessel category. The tankers will be employed in the regional and international tanker market for five years to help meet the projected upsurge in demand for petroleum product carriers. The financing for the tankers was provided by Standard Chartered Bank, SMBC, Riyad Bank and Natixis.

Commenting on the deal, lead partner Robin Hallam said:

"We are delighted to have been a part of a groundbreaking transaction in the middle East which has introduced equity investors to a specialised sector in which there are growth opportunities."

Other members of the team at Hogan Lovells included Rustum Shah, partner in the Dubai office, and Shalini Bhuchar, Of Counsel in London.

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