[Cancelled] China Eximbank contributes $12.75 million to Tranche B of buyer's credit for acquisition of H1310 shipping vessel (Linked to Project ID#62839, #62841, and #73609)

On October 12, 2015, China Exim Bank along with ABN AMRO Bank N.V. signed a loan agreement with SBI Puro Shipping Company Limited, SBI Valrico Shipping Company Limited, and SBI Maduro Shipping Company Limited, each a subsidiary of Scorpio Bulkers Inc. and a company incorporated under the laws of the Republic of the Marshall Islands. Under the agreement, China EXIM Bank and ABN AMRO Bank N.V. agreed to each provide $38,250,000 to finance part of the purchase price of three vessels and refinance the SBI Puro Indebtedness. The loan by China EXIM Bank is divided into three tranches, A, B, and C, worth $25,500,000 for each vessel: vessel A, the 180,000 dwt capesize bulk carrier m.v. 'SBI PURO' (tranche A); vessel B (H1310) (tranche B); and vessel C (H1311) (tranche C). SBI Puro Shipping Company is receiving vessel A, SBI Valrico Shipping Company Limited is receiving vessel B, and SBI Maduro Shipping Company Limited is receiving vessel C. This project records Tranche B, $25,500,000 for H1310, half of which, $12,750,000, is committed by China EXIM Bank. Sinosure, China Export & Credit Insurance Corporation, has agreed to provide a buyer's credit insurance policy covering up to 90% of the political and commercial risks associated with each tranche. On April 1, 2013, Shanghai Waigaoqiao Shipbuilding Co., Ltd. entered into building contracts with SBI Valrico Shipping Company Limited and SBI Maduro Shipping Company Limited to construct Vessel H1310 and Vessel H1311 for and deliver them to the relevant sellers, Great Wave Navigation 2 Ltd. and Great Wave Navigation 3 Ltd. On January 6, 2014, the memoranda of the agreements of the terms and conditions on the selling of the vessels were signed. The contract price of each vessel is $56,500,000. According to section 5.3.4 of '$76,500,000 Secured Loan Agreement', the amount of each lender's participation in any tranche will be equal to the proportion borne by its commitment to the total commitments, so the proportion of involvement of China EXIM Bank in each tranche is 50%. The amount of each tranche is $25,500,000 and China EXIM Bank provides accordingly $12,750,000. The interest rate is calculated as LIBOR rate (0.528% as the average of 6 months in October 2015) + margin (2.5%) = 3.028%. The first installment in respect of Tranche B falls due on the 21st day of the last month of the next financial quarter, thus the grace period for each tranche is 3 months. The maturity date for tranche B is the date falling ten years after the delivery date of H1310, which was planned in 2015, thus the maturity date was planned to be in 2025. During November 2015, Scorpio Bulkers Inc. drew down $25,500,000 relating to the delivery of one of the vessels. Pursuant to the three vessels collateralizing this facility being classified as held-for-sale in November 2015, this facility was canceled in December 2015 and the $25,500,000 was repaid. According to 'SCORPIO BULKERS INC. ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER OF 2015', a Capesize vessel named SBI Valrico was delivered from Shanghai Waigaoqiao Shipbuilding Co., Ltd. between July 1, 2015 and October 29, 2015 while there was no record of vessel delivery of SBI Puro nor SBI Maduro. Therefore, the drawn down and repaid $25,500,000 is identified with tranche B. This project status is cancelled. This project is linked to projects #62839 (Tranche A), #62841(Tranche C), and project #73609, which records the amount disbursed before the facility's cancellation.

Additional details

Scorpio Bulkers Inc. is a company incorporated under the laws of the Republic of the Marshall Islands. AidData assumes that this project was financed by an export buyer's credit (buyer’s credit loan) as the flow is denominated in USD and it is insured with Sinosure's buyer's credit insurance.

Number of official sources

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Number of total sources

4