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Overview

Bank of China Limited contributes to $1.17 billion syndicated loan for purchase of fifteen 7,000 TEU dual fuel newbuild container vessels (Linked to Record ID#104576)

Commitments (Constant USD, 2023)$141,737,870
Commitment Year•2022Country of Activity•Marshall IslandsDirect Recipient Country of Incorporation•Marshall IslandsSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 4, 2022
Last repayment (originally scheduled)
Oct 1, 2034

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 Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • BNP Paribas S.A.
  • Citibank, N.A.
  • HSBC (Hong Kong and Shanghai Banking Corporation)
  • Société Générale S.A. (SocGen or Societe Generale)
  • Standard Chartered Bank PLC
  • Sumitomo Mitsui Banking Corporation (SMBC)

State-owned Banks

  • Development Bank of Japan Inc. (DBJ)

State-owned Commercial Banks

  • China Bank of Communications (BoCom or BoComm)

Receiving agencies

Private Sector

  • Seaspan Corporation

Implementing agencies

Private Sector

  • Jiangsu New Yangzi Shipbuilding Co., Ltd.

Insurance providers

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Security / collateral agents

Private Sector

  • BNP Paribas S.A.

Loan description

In 2022, Bank of China and Bank of Communications contributed to USD 1.17 billion syndicated loan to Seaspan Corporation for purchase of fifteen 7,000 TEU dual fuel newbuild container vessels, Marshall Islands

Interest type•UnknownMaturity•12 years

Narrative

Full Description

Project narrative

On October 4, 2022, Seaspan Corporation — a leading container subsidiary of NYSE-listed Atlas Corporation that is legally incorporated in the Marshall Islands — signed a $1.17 billion, 12-year syndicated loan agreement with a group of Chinese and non-Chinese banks to facilitate the purchase of fifteen 7,000 TEU dual fuel newbuild container vessels under construction at the Jiangsu New Yangzi Shipbuilding. Participants in the syndicate include HSBC, Standard Chartered Bank, Bank of China Limited (recorded in this project), Citibank, Bank of Communications (recorded in Record ID#104576), BNP Paribas (BNPP), Societe Generale, Development Bank of Japan Inc, and Sumitomo Mitsui Banking Corporation. Bank of China Limited and Bank of Communications each reportedly contributed $150 million to the syndicate. BNPP acted as ECA Agent, Facility Agent and Security Agent, BNPP and Societe Generale as Mandated Lead Arrangers and Bookrunner, HSBC, Standard Chartered Bank, Bank of China Limited, Citibank and Bank of Communications acted as Mandated Lead Arrangers, and Development Bank of Japan Inc. and Sumitomo Mitsui Banking Corporation acted as Lead Arrangers. The borrowing terms of the loan are unknown. However, it is known that the loan is supported by a credit insurance policy.

Staff comments

1. FPG-AIM acted as JOLCO Arranger and FPG as JOLCO Equity Underwriter on the transaction. The cross-border Assets and Structured Finance team at Watson Farley & Williams that advised BNPP was led by Asia Group Head and Hong Kong Partner Madeline Leong and Partner Lizzie Roe. They were supported by associate Becky Zhu in Singapore. New York Finance Partner Christopher Belisle and Counsel Maxi Adamski-de Visser advised on the Marshall Islands law matters. A separate WFW Asset Finance team, now based in the firm’s Tokyo office, advised Japanese equity underwriter FPG. The team comprised Partners Simon Collins, Keisuke Imon and Senior Associate Christian Orton. Global Law Office acted as BNPP’s Chinese law counsel, supporting the Watson Farley & Williams team on the elements of the deal involving Sinosure elements. 2. The transaction was structured as a set of Japanese Operating Lease with Call Options (JOLCOs).