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Overview

China Eximbank contributes $198 million to $330 million syndicated loan to Scorpio Bulkers to finance acquisition of 22 bulk carriers

Commitments (Constant USD, 2023)$203,059,530
Commitment Year•2014Country of Activity•Marshall IslandsDirect Recipient Country of Incorporation•Marshall IslandsSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 29, 2014
Start (actual)
Jul 29, 2014
End (planned)
Sep 21, 2021
First repayment (originally scheduled)
Apr 2, 2014
Last repayment (originally scheduled)
Dec 30, 2020

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)

Cofinancing agencies

Private Sector

  • BNP Paribas S.A.
  • Crédit Agricole Corporate and Investment Bank (CACIB) (Crédit Agricole CIB) (Formerly Calyon) (Formerly Crédit Agricole Indosuez (CAI))
  • Deutsche Bank AG
  • Skandinaviska Enskilda Banken AB (SEB)

Receiving agencies

Private Sector

  • Eneti Inc. (formerly Scorpio Bulkers Inc.)

Implementing agencies

Private Sector

  • Nantong Construction Engineering Group Co., Ltd.

State-owned companies

  • Chengxi Shipyard Co., Ltd. ("Chengxi")
  • Dalian Shipbuilding Industry Co., Ltd. (DSIC)
  • Hudong-Zhonghua Shipbuilding Group Co., Ltd.

Loan description

China Eximbank contributes $198 million to $330 million syndicated loan to finance acquisition of 22 bulk carriers in Marshall Islands 2014

Grace period•0.25 yearsGrant element•18.5326%Interest rate (t₀)•3.255%Interest type•Variable Interest RateMaturity•7 years

Narrative

Full Description

Project narrative

On July 29, 2014, Export-Import Bank of China entered into a syndicated loan as a lead arranger for Scorpio Bulkers Inc., a company incorporated under the laws of Marshall Islands. The loan is used for post-delivery financing of up to 22 Ultramax and Kamsarmax bulk carriers. The syndicated loan is up to USD 330 million, and China Exim Bank committed USD $198 million. Each lender shall participate in an advance in the proportion which its commitment bears to the total commitments, thus CEXIM commits 60% (198/330*100%) in each advance. Other lenders are Crédit Agricole Corporate and Investment Bank with $35,000,000; Deutsche Bank AG Filiale Deutschlandgeschaeft with $27,000,000; BNP Paribas with $35,000,000; and Skandinaviska Enskilda Banken AB (PUBL) with $35,000,000. The vessels were built at Nantong COSCO KHI Ship Engineering Co. Ltd, Dalian COSCO Kill Ship Engineering Co. Ltd, Chengxi Shipyard Co. Ltd., and Hudong-Zhonghua Shipyard (Group) Co. Ltd.. Under the loan agreement, the loan is divided into 22 advances of $15,000,000, corresponding to the 22 carriers. The borrower shall repay each advance of the loan by consecutive quarterly installments equal to 1/48th of the original amount of such advance, together with a balloon payment in the amount of the outstanding principal balance of such advance, payable at the same time as the last repayment installment on September 21, 2021. The loan facility has a term of seven years. The interest rate is the summation of the margin (2.925% per annum) and LIBOR rate (based on the 2014 July 6-month USD LIBOR rate, 0.328%), summed at 3.253%. According to "Letter Agreement, dated July 10, 2015, relating to the $330.0 Million Senior Secured Credit Facility", on July 10, 2015, the facility was reduced by $15.0 million due to the sale of one of the vessels, SBI Kratos. During 2018, Scorpio Bulkers Inc. has repaid approximately $84.8 million, as two of the Kamsarmax vessels and six of the Ultramax vessels previously financed by this loan are financed under other loans. As of December 31, 2018, approximately $140.7 million was outstanding.