[Cancelled] CDB contributes $43.8 million USD to a $87.6 million USD syndicated loan to partially finance the purchase of Hull 1638A, Hull 1241, and Hull 1242 (Linked to Project ID#73606)

On February 13, 2012, China Development Bank (CDB) entered into a syndicated loan with HSH Nordbank AG (HSHN) as another mandated lead lender to the borrower, Dryships Inc., to finance the construction costs of three vessels made by Chinese shipbuilding companies. The total amount of syndicated loan is up to $87,653,740 USD and the commitment of each bank is 50%, thus CDB's commitment is $43,826,870 USD. The facility is available in three tranches: (1) Tranche 1 of $20,491,000 for Hull number 1638A, a 76000 dwt bulker made by Hudong-Zonghua Yard in China. It was then named Raraka and was delivered in March 2012; (2) Tranche 2 of $33,581,370 for Hull number 1241, a 176000 dwt bulk carrier made by Shanghai Jiangnan-CHangxing Yard in China; (3) Tranche 3 of $33,581,370 for Hull number 1242, a 176000 dwt bulk carrier made by Shanghai Jiangnan-CHangxing Yard. It is unclear what the ratio of financing between CDB and HSHN is across the 3 tranches. For the repayment of the loan, tranche 1-3 shall be repaid in consecutive quarterly repayment installments (Tranche 1: USD 320,175 each, Tranche 2: USD 524,710 each, Tranche 3: USD 524,710 each) plus relevant balloon payment payable together with the last repayment installment. The first repayment installment becomes due and payable three months after the drawdown date of each tranche. The final maturity date for tranche 1-3 is up to 8 years from drawdown of tranche 1 and not later than March 31, 2020. The interest rate is calculated as the margin (3.35% per annum) and LIBOR screen rate (based on 2012 February 6-month average USD LIBOR 0.757%), summed at 4.107%. The two 176000 dwt bulk carriers were scheduled for delivery in the second quarter of 2013, but they were sold in March 2013 prior to delivery and the relevant available portion of the loan, i.e. tranche (2) and tranche (3) was terminated. Dryships Inc. has drawn down $19,065,000 related to the vessel Raraka (ex H1638). As of December 31, 2015 and 2014, the company had outstanding borrowings amounting to $14.6 million and $15.8 million, under this loan facility, respectively. The amount disbursed before the project's cancellation is recorded in Project ID#73606.

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