Overview

China Eximbank provides a $146.4 million USD loan to Frontline Ltd. subsidiaries for the acquisition of two VLCCs

Commitments (Constant USD, 2023)$203,158,814

Commitment Year•2009Country of Activity•BermudaDirect Recipient Country of Incorporation•LiberiaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: May 27, 2009

Start (actual): Jun 10, 2010

End (actual): Aug 1, 2010

Geospatial footprint

Map overview

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Frontline Ltd.'s registered address is Par-la-Ville Place, 14 Par-la-Ville Road, Hamilton HM08, Bermuda. More detailed locational information can be found at: https://www.openstreetmap.org/node/3514988093

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

Export-Import Bank of China (China Eximbank)

Receiving agencies

Joint Venture/Special Purpose Vehicles

Front Monarch Inc. (Monarch)
Front Sovereign Inc. (Sovereign)

Implementing agencies

State-owned companies

Shanghai Waigaoqiao Shipbuilding Co., Ltd. (SWS)

Guarantors

Private Sector

Frontfleet Ltd.
Frontline 2012 Ltd.

Collateral providers

Private Sector

Frontline Ltd.

Loan description

China Eximbank provides a $146.4 million USD loan to Frontline Ltd. subsidiaries for the acquisition of two VLCCs

Interest type•Unknown

Collateral

Frontline Ltd. pledged its shares in Front Sovereign Inc. and Front Monarch Inc. to China Eximbank as security (i.e. collateral) for its repayment obligations.

Narrative

Full Description

Project narrative

On May 27, 2009, the Export-Import Bank of China signed a $146,440,000 USD pre- and post-delivery term loan facility agreement with Front Sovereign Inc. (Sovereign) and Front Monarch Inc. (Monarch) — two special purpose vehicles (SPVs) legally incorporated in Liberia and wholly-owned subsidiaries of Frontline Ltd. — for the acquisition of two Very Large Crude Carrier (VLCC) vessels. Frontline Ltd. pledged its shares in Front Sovereign Inc. and Front Monarch Inc. to China Eximbank as security (i.e. collateral) for its repayment obligations. Frontline 2012 Ltd./Frontfleet Ltd. also issued corporate guarantees in support of this loan. This loan partially financed the acquisition of two VLCCs worth $79,700,000 USD by vessel-owning companies Sovereign and Monarch. Each VLCC was a double hull ship and had a deadweight tonnage (DWT) of 297,000. Sovereign's VLCC was named 'Front Cecilie' and Monarch's VLCC was named 'Front Signe'. Shanghai Waigaoqiao Shipbuilding Co., Ltd. (SWS) was responsible for construction of both vessels. Front Cecilie was delivered on schedule to Frontline on June 10, 2010. Front Signe was delivered to Frontline in August 2010.

Staff comments

1. Frontline Ltd. is a tanker owner and operator that is legally incorporated in Bermuda.