China Eximbank and other Chinese banks provide $1.112 billion syndicated buyer’s credit loan to National Iranian Tanker Company for purchase of 12 very large crude carriers

Project narrative

In 2009, a syndicated of Chinese state-owned banks (including China Eximbank) signed a $1.112 billion syndicated buyer’s credit loan agreement with the National Iranian Tanker Company (NITC) — a state-owned Iranian company — for the purchase of 12 very large crude carriers (VLCCs) weighing 318,000 tons each from China. The main source of funding was the Export-Import Bank of China, but other banks also participated. The names of these banks and loan terms were not disclosed. The combined capacity of all the VLCCs was 24 million barrels of crude oil. China Eximbank was reportedly the largest contributor to the syndicated loan. The total cost of each VLCC was approximately $102 million, i.e. $1.2 billion USD, and the syndicate of banks agreed to finance 90% of the total project cost. The order was split evenly between Waigaoqiao Shipbuilding Co. Ltd (a subsidiary of CSSC) and the Dalian Shipbuilding Industry Co. Ltd (a subsidiary of CSIC). The order for the ships was first placed in 2009. The first ship, christened 'Safe', was expected to be delivered by May 2012. Another 7 ships were to be delivered by the end of 2012 with the remaining 4 ships to be delivered by the end of 2013. There is some evidence that this project entered implementation. A 2012 Reuters article notes that NITC paid 2/3 of the $600 million order to one of the Chinese shipyards. However, precise VLCC delivery dates are unavailable.