RIYADH (Bloomberg) — The National Shipping Co. of Saudi Arabia agreed to a 1.05 billion-riyal ($280 million) Islamic loan with the Saudi Public Investment Fund as the operator of oil and chemical tankers expands its fleet.

The Riyadh-based shipper will use the Murabahah loan to help pay for the construction of eight new oil tankers, according to a statement on its website dated April 21. National Shipping didn't provide the terms of the loan.

A Murabahah contract is a commodity trade-based agreement that allows a borrower to repay debt at cost plus a pre-agreed profit rate to comply with Muslim Shariah law's ban on interest.