Overview

Bank of China contributes to a $167.3 million USD syndicated loan to TORM Singapore for the acquisition of six new medium range product tankers

Commitment Year•2010Country of Activity•DenmarkDirect Recipient Country of Incorporation•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2010

Last repayment (originally scheduled): Dec 30, 2019

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

Bank of China (BOC)

Cofinancing agencies

Private Sector

Société Générale Corporate and Investment Banking (SGCIB)

Receiving agencies

Private Sector

TORM Singapore Pte Ltd

Implementing agencies

State-owned companies

Guangzhou Shipyard International Co, Ltd. (GSI)

Guarantors

Private Sector

TORM A/S (now TORM plc)

Insurance providers

State-owned companies

China Export & Credit Insurance Corporation (Sinosure)

Loan description

Bank of China contributes to a USD $167.3 million syndicated loan to TORM Singapore for the acquisition of six new medium range product tankers in Denmark in 2010

Interest type•UnknownMaturity•10 years

Collateral

This loan was secured by a standard shipping security package, namely mortgages of the vessels, insurances assignment, and earnings assignment.

Narrative

Full Description

Project narrative

In 2010, a syndicate of at least two banks — including the Bank of China (BOC) and Société Générale Corporate & Investment Bank (SGCIB) — entered into a $167.3 million USD syndicated loan agreement with TORM Singapore Pte. Ltd. — a Singapore-incorporated subsidiary of Denmark's TORM A/S — for the acquisition of six new medium range product tankers. This loan carried a maturity period of 10 years post-delivery. The $167.3 million USD syndicated loan consisted of a 50% Sinosure buyer credit and 50% of an uncovered commercial loan. TORM Denmark issued a guarantee for this loan and Sinosure provided export credit insurance that included 95% comprehensive cover. This loan was secured by (i.e. collateralized) a standard shipping security package, namely mortgages of the vessels, insurances assignment, and earnings assignment. The proceeds were to be used by the borrower to finance 60% of the total shipbuilding contract price of six new medium range product tankers constructed by Guangzhou Shipyard International Company. Bank of China and SCCIB served as mandated lead arrangers. SGCIB served as coordinating bank, Sinosure agent, commercial agent, and hedging bank.

Staff comments

1. It is unclear whether BOC and SGCIB were the sole lenders to this syndicated loan. For the time being, AidData has declined to apply its equal contributions assumption.