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Overview

China Eximbank provides $37.5 million USD loan to Foremost Maritime Group for the construction of two bulk carriers

Commitments (Constant USD, 2023)$39,232,439
Commitment Year2015Country of ActivityUnited StatesDirect Recipient Country of IncorporationUnited StatesSectorTransport And StorageFlow TypeLoan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Oct 1, 2015
Last repayment (originally scheduled)
Sep 29, 2022

Geospatial footprint

Map overview

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This project provides a loan for the construction of two 180,000 deadweight tonnage (DWT) eco friendly bulk carriers to Foremost Maritime Company LLC (Foremost Group), which is headquartered at 60 E 42nd St, New York, NY 10165, US. More detailed locational information can be found at https://www.openstreetmap.org/way/138022483.

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 Policy Banks

  • Export-Import Bank of China (China Eximbank)

Cofinancing agencies

Private Sector

  • First Commercial Bank Limited

Receiving agencies

Private Sector

  • Foremost Maritime Company LLC (Foremost Group)

Implementing agencies

State-owned companies

  • Qingdao Beihai Shipbuilding Co., Ltd.

Loan description

China Eximbank provides $37.5 million USD loan to Foremost Maritime Group for the construction of two bulk carriers

Interest typeUnknownMaturity7 years

Narrative

Full Description

Project narrative

In October of 2015, the Export-Import Bank of China (China Eximbank) entered into a $37.5 million USD loan agreement with the Foremost Maritime Company LLC (Foremost Group) — a New York-based shipping and trading firm owned by the Chao family — for the construction of two 180,000 deadweight tonnage (DWT) eco friendly bulk carriers. The loan carried a maturity period of seven years. In addition to the China Eximbank loan, the New York Office of Taiwan's First Commercial Bank also provided a $37.5 million USD loan facility with a maturity of seven years for the bulkers. The ships were being constructed by the Qingdao Beihai Shipbuilding Heavy Industry, a subsidiary of the state-owned China Shipbuilding Industry Corporation (CSIC). This was reportedly the first instance of cooperation between institutions from both China and Taiwan contributing to maritime ship financing. The founder and owner of the Foremost Group, James S. C. Chao, was present at the signing, as well as his daughter, Elaine L. Chao. Elaine Chao was the former Chairman of the Federal Maritime Commission and former Deputy U.S. Maritime Administrator, and held other high-level US government positions, including Secretary of Labor (under the second Bush administration) (and later served as Secretary of Transportation under the first Trump administration). Chao is also married to Mitch McConnell, Kentucky Senator and Senate Majority Leader, who also attended the signing.