ABN AMRO Finances Another KDB vessel

ABN AMRO Bank, Singapore Branch has recently provided pre-delivery and post-delivery senior debt facilities to a Panamanian single purpose company established under the Korea Development Bank Shipping Fund Program for the acquisition of a capesize class dry bulk carrier.

The carrier was sold to it by STX Pan Ocean and will be bareboat chartered back to the company on delivery and, subsequently, sub-chartered out to a Hong Kong leasing company. The Singapore office of Watson, Farley & Williams advised ABN AMRO Bank the lenders in this transaction.

Chinese Money

China has many intrinsic reasons for supporting the shipyards – either by offering direct loans to the yards or to their clients. The labour intensive shipbuilding industry uses steel from Chinese steel mills, which is another important source of employment for many people. Since its establishment in 1994, China Exim Bank has played an instrumental role in supporting China’s maritime industry, having granted shipping/shipbuilding related loans of over RMB 116.8 billion (USD 17.1 billion) in the domestic currency and USD 8.5 billion in greenback at the end of 2009. The bank has supported the financing of 3,722 China built vessels of an aggregate tonnage of 120 million dwt and moving forward, China Exim Bank will continue to assist shipyards in stablising their orderbooks and secure new orders through the provisions of seller’s credit and buyer’s credit, payment guarantees and advance payment refund guarantees.

This year, the policy bank will be focusing its attention on providing financial support to promote mergers and acquisitions among the shipbuilders, encourage them to move into higher end ships such as LNG and offshore construction vessels and invest in new shipbuilding technologies. These initiatives are very much in line with the policy guidelines stipulated by the Chinese State Council last year. Continue Reading

London calling. London calling.

…. more education about shipping is key to attract investor appetite in London.

Marine Money returned to London after a long absence to host a wonderful 1st annual conference on 21st January 2010.  This was the first of 14 Marine Money conferences for 2010 and we got off to a cracking start.  Over 180 delegates and speakers attended with about one third coming from overseas.
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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

KDB Let’s Together Fund Finds Interest

Bank of Nova Scotia Asia and its syndicate of lenders have recently participated in Korea Development Bank’s shipping program. This is the first transaction effected under KDB Let’s Get Together Program, designed to enhance the liquidity of Korean shipping companies. Continue Reading

Buss Capital Restructures KG Funds in Singapore

Watson, Farley & Williams LLP (“WFW”) has advised three separate Singapore-based partnerships on the restructuring of their container and lease portfolios and USD 1.2 billion of related debt financing in Singapore, to allow the Partnerships to take advantage of Singapore’s Approved Container Investment Enterprise (“ACIE”) scheme, which provides container owners with concessionary tax rates on container leasing and management activities. The Partnerships are owned by German KG funds sponsored by Buss Capital GmbH & Co. KG of Hamburg, Germany.

From 1 April 2008, leasing of containers has been included under the Maritime Finance Incentive (“MFI”) and an ACIE will enjoy either a concessionary tax rate of 5% or 10% on its income from leasing sea containers (by way of operating or finance leases) to onshore and offshore lessees, depending on the level of local business spending and headcount commitments. The management company of an ACIE will also enjoy a 10% concessionary tax rate on its management fee income derived in connection with the management of an ACIE.

Full House in Athens – Part 2

By Kevin Oates

…in the longer term shipping should correct but quality, transparency and financial strength are key to survival.

Despite the tough market and the general lack of ship finance, Marine Money’s Greek Ship Finance Forum again filled the seats in Athens.  With 310 delegates and speakers and some 40 more for the TEN Ltd lunch, there was plenty gossip and exchange of views at the 11th Annual conference held on the 8th of October 2009.

The event had started with a speaker’s dinner the previous night co-hosted by Navios Maritime Holdings and was to end in the early hours of the following morning at the Capital Party co-hosted by Capital Product Partners LP at a well-known Athens nightclub.  Even if the market is tough, we still know how to enjoy ourselves.

Back at the conference, our day began with Guy Verberne, a leading economist at Fortis Bank (Nederland) telling us that the economic recovery has come and it may well be sustainable.  China, he says, has plenty foreign reserves to prolong it’s stimulus package for as long as it needs and he sees no meaningful cutbacks from the stimulus packages of western governments, at least through 2010.  A risk is a double dip in 2011 if we get too bogged down in debt.
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The CSL Group Invests in Indonesian Flag

The CSL Group Inc. (“CSL”) of Montreal, Canada, a world-leading provider of marine dry bulk cargo handling and delivery services, has invested in the Indonesian flagged, floating offshore transshipment platform “FOTP Derawan”, constructed at the Yahua Shipyard in Nantong, China. The vessel will be operating offshore Kalimantan, Indonesia for PT Berau Coal.

This was a complex multi-jurisdictional transaction involving CSL’s international partners and its various subsidiaries. The Singapore office of Watson, Farley & Williams LLP advised on the overall transaction structure, the shareholders’ agreement governing relationships of the relevant entities, the loan and security agreements for the financing of the vessel and the various commercial agreements (including the construction contract and charter arrangements in relation to the vessel), which were necessary for the closing of the transaction. The transaction team consisted of Chris Lowe, Damian Adams and Ivan Chia.

New Project & Structured Finance Partner for Watson, Farley & Williams Singapore

The Singapore office of Watson, Farley & Williams LLP (“WFW”) is pleased to announce that Mehraab Nazir, a structured asset and project finance specialist, has moved from the London office of WFW to join the Singapore office as a partner in its International Project & Structured Finance Group.

Mehraab advises on all aspects of structured asset and project finance related matters particularly with regards to aviation and in the renewables, power and energy space. His recent asset experience includes: advising banks and large corporates on acquisitions and disposals of a number of “big ticket” aircraft and other leasing companies and advising lessors, lessees and manufacturers in relation to cross-border operating lease transactions, as well as advising on debt financing, joint ventures, insolvencies and restructurings. Mehraab’s recent renewable energy experience includes:  acting for a lender on the refinancing of a UK onshore wind farm, advising the lenders on the financing of a European offshore wind farm, advising the prospective purchaser of a UK offshore wind farm and acting for the developer of a portfolio of solar thermal power and photovoltaic plants.

Bumi Armada Completes USD 190 Million Fundraising

Armada Oyo has secured a five-year USD 190 million limited recourse loan facility with a club of seven mandated lead arrangers for an FPSO currently undergoing conversion and owned by its parent Bumi Armada Berhad. The loan will finance around 75% of the project cost, and remarkably was oversubscribed by more than the total project amount. Final commitments came through in springtime, with closure just in August.

SMBC acted as structuring bank, documentation bank and SACE coordinator on behalf of the team of mandated lead arrangers, which in addition to SMBC comprised Banca UBAE S.P.a., Australian and New Zealand Banking Group Limited (ANZ), ABN AMRO Bank N.V., WestLB A.G., Malayan Banking Berhad (Maybank), and Standard Chartered Bank. Watson, Farley & Williams advised Bumi Armada on the legal aspects of the transaction. Continue Reading