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Overview

Bank of China provides a $30 million USD bridge loan to Fairstar Heavy Transport to finance the third payment installment for a construction of a semi-submersible vessel

Commitments (Constant USD, 2023)$34,094,914
Commitment Year•2011Country of Activity•NetherlandsDirect Recipient Country of Incorporation•NetherlandsSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Dec 14, 2011
End (planned)
Dec 31, 2012
End (actual)
May 31, 2012

Geospatial footprint

Map overview

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This project was a loan agreement with Dutch marine transport company Fairstar Heavy Transport N.V., headquartered at the Millennium Tower, Weena 686, 3012 CN Rotterdam, Netherlands. More detailed locational information can be found at: https://www.openstreetmap.org/way/255341653

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)

Receiving agencies

Private Sector

  • Fairstar Heavy Transport N.V. (FAIR)

Implementing agencies

State-owned companies

  • Guangzhou Shipyard International Co, Ltd. (GSI)

Loan description

Bank of China provides a $30 million USD bridge loan to Fairstar Heavy Transport to finance the third payment installment for a construction of a semi-submersible vessel

Interest type•Unknown

Narrative

Full Description

Project narrative

On December 14, 2011, it was announced that the Bank of China (BOC) entered into a $30 million USD bridge loan agreement with Fairstar Heavy Transport N.V. (FAIR) — a Rotterdam, Netherlands-headquartered heavy marine transport company listed on the Oslo Stock Exchange — to finance the third payment installment for the construction of a semi-submersible vessel. The loan was to be repaid upon delivery of the ship in 2012 via a credit facility signed with DNB Bank. The proceeds were to be used by the borrower for pre-delivery payment (PDPs) purposes, namely the financing of the third payment installment of a shipbuilding contract with Guangzhou Shipyard International Company Limited (GSI) for the construction of a semi-submersible vessel. The vessel (known in contract as Hull No.H11130007) was a 216-meter open-stern semi-submersible with a capacity of 48,000 deadweight tons (DWT) named as 'MV Forte'. The vessel was due for delivery in 2012, with it being owned and operated by Fairstar thereafter. The vessel was delivered on May 31, 2012. Fairstar closed documentation with its lenders to pay the contract. Forte was to work on the Gorgon LNG Project in Australia.

Staff comments

1. There is some evidence that Sinosure may have provided credit insurance for this bridge loan. This issue merits further investigation.