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Overview

China Eximbank contributes $29.2 million USD to Tranche B of loan for acquisition of H2549 shipping vessel (Linked to Record ID#62794, #62844)

Commitments (Constant USD, 2023)$31,870,884
Commitment Year•2016Country of Activity•Marshall IslandsDirect Recipient Country of Incorporation•Marshall IslandsSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 7, 2016
Start (actual)
Jan 7, 2016
End (actual)
Jan 4, 2017
First repayment (originally scheduled)
Apr 7, 2016
Last repayment (originally scheduled)
Jan 3, 2031

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 Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Aerik Shipping Company Inc.

Implementing agencies

State-owned companies

  • Jiangnan Shipyard (Group) Co., Ltd

Loan description

China Eximbank contributes $29.2 million USD to Tranche B of loan for acquisition of H2549 shipping vessel

Grace period•0.25 yearsGrant element•32.0533%Interest rate (t₀)•3.1448%Interest type•Variable Interest RateMaturity•15 years

Narrative

Full Description

Project narrative

On January 7, 2016, China Eximbank signed a $75,734,900 USD loan agreement with Aster Shipping Company Inc., Aerik Shipping Company Inc., and Houk Shipping Company Inc — special purpose vehicles legally incorporated under the laws of Marshall Islands and wholly owned subsidiaries of shipping company Diana Shipping Inc. — to finance the purchase of three vessels made by Chinese shipbuilding companies. These vessels include: H2548 (Vessel A) and H2549 (Vessel B) from Jiangnan Shipyard (Group) Co., Ltd and DY6006 (Vessel C) from Yangzhou Dayang Shipbuilding Co., Ltd. The loan is divided into three tranches: tranche A, $29,220,000 USD (captured via Record ID#62794); tranche B, $29,220,000 USD (captured via Record ID#62845); and tranche C, $17,294,900 USD (captured via Record ID#62844), corresponding to Vessel A, Vessel B, and Vessel C, respectively. On May 17, 2013, Jiangnan Shipyard (Group) Co., Ltd. entered into a building contract for Vessel A (H2548). The loan carries an interest rate of LIBOR plus a 2.3% margin. The first installment falls due on whichever of 21 January, 21 April, 21 July, or 21 October that next falls not less than six weeks after the Drawdown Date in respect of that Tranche. All tranches are repayable no later than March 12, 2032. The borrower is responsible for paying China Eximbank a commitment fee computed at the rate of 0.2% per annum on the undrawn commitment from time to time from the date of the Agreement until the last Availability Termination Date, as well as $378,674.50 USD as an arrangement fee. On January 4, 2017, the Diana Shipping company took delivery of Hulls H2548, named San Francisco, and H2549, named Newport News, and drew down $28,620,000 USD for each vessel under its loan agreement with China Eximbank.

Staff comments

1. AidData has estimated the all-in interest rate (3.156%) by adding 2.3% to the average 6-month LIBOR in January 2016 (0.856%). 2. The China Eximbank loan agreement can be accessed in its entirety via https://www.sec.gov/Archives/edgar/data/1318885/000091957416012194/d7078189_ex4-25.htm. and https://www.dropbox.com/scl/fi/uffgi64ro7rbfhew5ucis/sec.gov_Archives_edgar_data_1318885_000091957416012194_d7078189_ex4-25.htm.pdf?rlkey=dfmvolaqev7jgklolbo327nag&st=o5eq2j5t&dl=0