Bahrain bank, Cyprus's Lemissoler in joint venture agreement

Bahrain's Venture Capital Bank has joined forces with Cypriot company Lemissoler Shipping Group to create a joint venture company with initial plans to invest $166 million on ships this year.

Lemissoler Maritime Bahrain will be located in Bahrain with VC Bank holding an 87.5 percent stake and the rest being held by Lemissoler.

Lemissoler has been a member of the SFS Group since 2004, and in addition to Lemissoler Shipmanagement, which operates 35 vessels (nine owned), owns two Baltic Sea operators, Inter Marine Container Lines and Baltic Containers Lines. Five paper product carriers owned by Lemissoler will be transferred to the new venture, which is also looking to obtain Panamax containerships to charter out.

We have been considering investing in the shipping industry for a while,?said Abdullatif Mohammed Janahi, chief executive officer of VC Bank.

The shipping industry is considered the lifeblood of the global economy since is directly linked to the world's escalating trade activity, and it is responsible for the carriage of 90 percent of world trade. We are proud to offer this unique investment opportunity that is Shariah compliant to our investors who are expected that will get an annual dividend yield of 9 percent payable every six months and an internal rate of return of 24 percent at exit to investors.