Overview

China Eximbank provides $328.4 million USD loan to Frontline Ltd. for acquisition of Suezmax tankers and LR2/Aframax tankers

Commitments (Constant USD, 2023)$358,192,965

Commitment Year•2016Country of Activity•BermudaDirect Recipient Country of Incorporation•BermudaSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Aug 1, 2016

Last repayment (originally scheduled): Jul 29, 2029

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

Private Sector

Frontline Ltd.

Loan desecription

China Eximbank provides $328.4 million USD loan to Frontline Ltd. for acquisition of Suezmax tankers and LR2/Aframax tankers

Interest type•Variable Interest RateMaturity•13 years

Narrative

Full Description

Project narrative

In the first months of 2016, the Export-Import Bank of China (‘China Eximbank’) agreed in principle to provide $328 million USD to Frontline Ltd. to finance eight new building contracts. Then, in August 2016, China Eximbank signed a $328.4 million USD senior secured term loan facility agreement with Frontline Ltd. The loan carried a maturity of 13 years (final maturity date: 2029), an interest rate of LIBOR plus an unspecified margin (said to be typical of Frontline's facilities), and an amortization profile of 18 years. In 2016, Frontline drew down $109.0 million USD in connection with one LR2 tanker and two Suezmax tanker newbuildings that were delivered in that year. In 2017, Frontline drew down another $165.9 million USD in connection with two Suezmax tankers and three LR2/Aframax tankers delivered in that year. The facility was fully drawn down as of December 31, 2019.

Staff comments

1. Frontline Ltd. is a tanker owner and operator that is legally incorporated in Bermuda. 2. AidData has coded the project_status field as Completion as all Chinese financing was disbursed and eight vessels were successfully acquired, per China Eximbank's pledge.