Narrative
Full Description
Project narrative
On November 6, 2001, the Export-Import Bank of China signed a $62.5 million USD export buyer's credit agreement with Somargas Limited — a Cayman Islands-incorporated special purpose vehicle (SPV) jointly owned by Norwegian marine transportation company I.M. Skaugen ASA (IMS) (50% equity stake) and American private equity firm GATX Capital Corporation (50% equity stake) — for the purchase of four liquefied petroleum gas (LPG) vessels. This loan carried a maturity period of 10 years and a fixed average base interest rate of 4.95%. The loan could not be drawn prior to the delivery of the vessels. The borrower entered into a financing facility for the "stretch" of the repayment profile with Nordea Bank and NIB Capital; Nordea Bank and NIB Capital provided guarantees towards China Eximbank for loan repayment. This loan was secured by (i.e. collateralized against) a pledge of vessels, assignment of earnings, pledge of bank accounts to which charter-hire is deposited and the assignment of assurance for the same vessels. The proceeds were to be used by the borrower to finance 75% of the net contract price of four 8,900 LPG vessels from China Shipbuilding Industry Trading Company, with the ships built by Hudong-Zhonghua Shipbuilding Co., Ltd.. Somargas Limited and Vintergas Limited — another joint venture of IMS and GATX, using a $32.3 million USD loan from China Eximbank (Record ID#103525) — together ordered six ethylene gas carriers for delivery between 2002 to 2003, with an option for four more vessels for deliver in 2003/2004; the vessels would fly the Hong Kong flag. Each vessel had a total delivered cost of $21.5 million USD. This export buyer's credit was reportedly China's first export buyer's credit for ship exports. The second vessel was launched and the third vessel's keel-laying occurred on December 31, 2001; five out of the six ordered (two to Vintergas, four to Somargas). The first vessel of the six ordered, known as MV 'Norgas Orinda' ,was delivered on October 31, 2002 to Somargas. The final vessel, known as MV 'Norgas Napa', was delivered on October 31, 2003, for Vintergas.
Staff comments
1. The final of the six vessels, which was for Vintergas, was delivered on October 31, 2003, marking completion of the entire order; therefore, Somargas's portion was delivered before this date, so AidData has coded October 31, 2003 as the actual_completion_date field and marked the actual_completion_date_estimated? field as True. 2. It is possible that the guarantees for Nordea Bank and NIB Capital were for only one of the two loans for Vintergas and Somargas; however, in any case, there was a guarantee provided by at least one of these banks, if not both, and AidData has coded both as guarantors for now. 3. I.M. Skaugen ASA (IMS) is a Norwegian marine transportation service company engaged in the transport of petrochemical gases and LPG in addition to the lightering of crude oil listed on the Oslo Stock Exchange.