[Cancelled] China Eximbank contributes $12.75 million to Tranche A of buyer's credit for acquisition of SBI PURO shipping vessel (Linked to Project ID#62771, #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, which are special purpose vehicles and wholly owned subsidiaries of Scorpio Bulkers Inc.. 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 each for each vessel: vessel A, the 180,000 dwt capesize bulk carrier m.v. 'SBI PURO' (tranche A); vessel B (H1310), and vessel C (H1311). 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 the Tranche A, $25,500,000 for 'SBI PURO', half of which, $12,750,000, is committed by China EXIM Bank. China Export & Credit Insurance Corporation (Sinosure) agreed to provide a buyer's credit insurance policy covering up to 90% of the political and commercial risks associated with each Tranche. On January 6, 2014, the memoranda of the agreements on the terms and conditions of selling 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 per tranche. 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 maturity date for tranche A is the date falling ten years after the delivery date of its corresponding vessel, so February 6, 2025. Pursuant to the three vessels collateralizing this facility being classified as held-for-sale in November 2015, this facility was canceled in December 2015. The project status is cancelled. This project is linked to project #62771 (Tranche B), #62841 (Tranche C), and project #73609, which records the amount disbursed before the facility's cancellation.

Additional details

1. Scorpio Bulkers Inc. is a company incorporated under the laws of the Republic of the Marshall Islands.

 2. 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

4

Number of total sources

4