Bank of China in Action Again, What’s New

Bank of China has extended a USD 179.55 million buyer’s credit facility to STX Pan Ocean recently in relation to the South Korean shipper’s acquisition of three 17,600 DWT bulkers ordered at Jiangsu New Century Shipyard. Jiangsu New Century Shipyard is one of the largest private shipbuilding groups in China who has built over 100 ships for owners in Denmark, United Kingdom, Germany and Italy. This successful transaction was initiated by Bank of China’s branch in Jiangsu province, upon news of STX Pan Ocean’s difficulty in securing finance for the ships. This year, STX Pan Ocean has earmarked USD 203 million to invest in 6 vessels. Continue Reading

Setting Sights on Overseas

Danish shipowner Torm has signed a ten year USD 167.3 million loan facility with a syndicate of banks led by Bank of China and Societe Generale. The funds will be used to cover 60% of the cost of six 53,000 dwt MR product tankers, each ordered at USD 46.5 million a piece from Guangzhou Shipyard International. Out of the USD 167.3 million facility, USD 83.7 million will be unsecured loans and the other USD 83.7 million in the form of buyer’s credit. This is also the very first time in a foreign syndicated loan that China Export & Credit Insurance Corporation (“Sinosure”) will underwrite the country risk in relation to the buyer’s credit. Torm will have to fork out the remaining 40% equity. Continue Reading

Flights Of Fancy: Shipping In a New World Order

By Jens Alers – Atlantic Marine LP, Bermuda, Member of the Schulte Group

Captain Eric Wong, rising at dawn from a good night’s rest in his onboard family quarters, watched the 3D plasma screen on the control panel as his ship approached the offloading platform. The “Nautilus” was one of sixteen Ultra Large Water Carriers, or ULWCs, in the Aqualiner fleet. Discharging her cargo of 500 acre-feet of water, approximately equivalent to 650,000 tons, was scheduled to take about six hours.

The precious load would soon flush into the distribution system of the New York-New Jersey- Philadelphia metro area, quenching the thirst of its 85 million people for just a few days. It was a mere drop, soon to be consumed in the hot and burgeoning marketplace for fresh water.

The vast metropolis, like so many other mega-cities in the US, had signed a 50 year supply contract with Aqualiner Marine to receive the glacial run-off from Greenland, Northern and Western Canada, and as far afield as Norway and the Malayan provinces of the Silk Route Alliance.

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