$540m Venezuelan Newbuilding Program

A major newbuilding program has been launched by Petroleos de Venezuela (PDVSA), worth an estimated $540m. The new investment will involve the construction of eight new Aframax tankers to be built at the South Korean yard of Hyundai Merchant Marine. The project is being 100% financed by a syndicated loan from four Japanese trading houses, headed by Mitsubishi Corp., for 12 years at the rate of LIBOR + 1.5% for the first five years, with a slight increase thereafter. Mitsubishi’s George Kasei told Marine Money, “The facility is a floating rate loan, with the mortgages secured on an assignment of freight and the 86,000 dwt vessels. The dollar loan, including principal and interest, will be fully paid out at end of the loan period.” The actual borrower is a newly formed PDVSA subsidiary, Venfleet, registered in Bermuda, with payments guaranteed by the parent company.

This is only an excerpt of $540m Venezuelan Newbuilding Program

Content is restricted to subscribers. To continue reading please Log-In or view our subscription options.