The National Shipping Company of Saudi Arabia (Bahri) [4030.SE] has signed a framework agreement with Arab Petroleum Investments Corporation (APICORP) for the establishment of an investment fund, with the aim of purchasing Very Large Crude Carriers (VLCCs), with a total value of up to USD1.5bn, which -according to the announcement- can purchase up to 15 VLCCs. The fund’s assets will be invested on three phases at USD500mn per phase, with pre-set conditions that need to be met to progress to the next phase. Bahri will underwrite 15% of the fund’s issued capital, whereas the remaining 85% will be injected by APICORP. According to the announcement, both parties will be responsible for the fund's management, whereas i) APICORP will be responsible for the financing; and ii) Bahri will be exclusively charged with technical and commercial management of the VLCC fleet owned by the fund. The first phase is expected to complete by end of 3Q16, and the financial impact of the implementation of the first phase is expected to be reflected on Bahri’s financial statements as of 1Q17. (Company disclosure)