GE Loan Brings Soviet Ships To Light

In an international ship financing coup, General Electric Capital Corp. has broken into the Soviet market with a deal to finance three new product tankers for AKP Sovcomflot. GECC is providing a $60.9m loan for three double hull tankers, each with a capacity of 47,000 dwt. The first mortgage financing will cover 60% of the cost of the new ships, which are being built at Halla Engineering and Heavy Industries in South Korea. The ships are part of a series of eight vessels. Five were built with other financing.

The loan is to a subsidiary of Fiona Trust and Holding Corp., the offshore flag subsidiary of Sovcomflot which has over 80 ships in its fleet. The loan is secured by first mortgages on the three tankers which are owned by single shipowning subsidiaries of the borrower.

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