Overview

China Eximbank contributed to $438.6 million USD syndicated loan to Conglomerate Maritime Limited for scrubber retrofitters on 86 cargo container ships

Commitments (Constant USD, 2023)$88,272,311

Commitment Year•2018Country of Activity•SwitzerlandDirect Recipient Country of Incorporation•GuernseySector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Dec 24, 2018

Geospatial footprint

Map overview

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The project was a loan to Conglomerate Maritime Limited, a Special Purpose Vehicle (SPV) headquartered at Regency Court, Glategny Esplanade, Guernsey GY1 3HW, Guernsey, owned by Mediterranean Shipping Company (MSC), headquartered at Chem. Rieu 12, 1208 Genève, Switzerland. More detailed locational information can be found at: https://www.openstreetmap.org/way/420022316 and https://www.openstreetmap.org/way/182090240

Stakeholders

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

Funding agencies

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Cofinancing agencies

Private Sector

BNP Paribas S.A.
Société Générale S.A. (SocGen or Societe Generale)

State-owned Banks

KfW IPEX-Bank GmbH
Norddeutsche Landesbank Girozentrale (NORD/LB)

Receiving agencies

Private Sector

Conglomerate Maritime Limited

Implementing agencies

Private Sector

Wärtsilä Oyj Abp (Wartsila Corporation)

State-owned companies

COSCO SHIPPING (China COSCO SHIPPING Corporation Limited)

Insurance providers

State-owned companies

China Export & Credit Insurance Corporation (Sinosure)

Loan description

China Eximbank contributed to $438.6 million USD syndicated loan to Conglomerate Maritime Limited for scrubber retrofitters on 86 cargo container ships in 2018 in Switzerland

Interest type•Unknown

Narrative

Full Description

Project narrative

On December 24, 2018, financial close was reached on a deal in which a syndicate of 5 banks — including China Eximbank — entered into a $438.6 million USD syndicated loan agreement with Conglomerate Maritime Limited — a special purpose vehicle (SPV) that is legally incorporated in Guernsey and a wholly-owned subsidiary of Mediterranean Shipping Company S.A. (MSC) — for the scrubber retrofitting project. The loan will be used to finance the manufacturing and installation of the exhaust gas cleaning systems (“scrubbers”) on board 86 container ships owned by the MSC group in light of the implementation of the International Maritime Organisation’s low sulphur cap regulations in 2020. While China Eximbank contributed to this loan, the following lenders contributed to the loan tranche: PNB Paribas, Norddeutsche Landesbank (NORD/LB), KfW IPEX-Bank, and Society Generale. BNP Paribas S.A. served as the coordinating bank and agent.. In addition, Sinosure provided insurance for this loan. The scrubbers are to be built by Finnish manufacturer WARTSILA and installed on board by COSCO Shipyard.

Staff comments

1. Watson Farley & Williams (“WFW”) advised the lenders. The WFW Paris team advising BNPP was led by Finance Partner Alexia Russell, supported by Associates Konstantina Kyprianidou and Parit Patani. WFW Paris were assisted by Alasdair McKenzie of Mourant Ozannes and Clement Neveceral of Schellenberg Wittmer providing Guernsey and Swiss law advice respectively. 2. The individual contributions of the five lenders to this $438.6 million USD syndicated loan are unknown. For the time being, AidData has estimated the contribution of China Eximhank by assuming that each lender contributed an equal amount ($87,720,000 USD) to the loan syndicate.