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Overview

China Eximbank contributes $88.9 million USD to a $127 million USD syndicated loan to Toisa Ltd. to finance the acquisition of four vessels

Commitments (Constant USD, 2023)$123,332,550
Commitment Year•2009Country 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
Dec 30, 2009
Last repayment (originally scheduled)
Dec 28, 2019

Geospatial footprint

Map overview

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Toisa’s registered office is at Clarendon House, 2 Church Street, Hamilton, Bermuda. More detailed locational information can be found at: https://www.openstreetmap.org/way/181494964

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

  • Citibank, N.A.
  • ING Bank N.V.

Receiving agencies

Private Sector

  • Toisa Ltd.

Collateral providers

Private Sector

  • Toisa Ltd.

Security / collateral agents

Private Sector

  • Citibank Europe plc (CEP)

Loan description

China Eximbank contributes $88.9 million USD to a $127 million USD syndicated loan to Toisa Ltd. to finance the acquisition of four vessels

Interest rate (t₀)•3.993%Interest type•Variable Interest RateMaturity•10 years

Collateral

Toisa Ltd.’s repayment obligations were secured by (i.e. collateralized against) first priority liens and security interests on the vessels and the related earnings, insurance, requisition compensation, charters, and charter guarantees related thereto as agreed in the Citi Cash Collateral Order.

Narrative

Full Description

Project narrative

On December 30, 2009, the Export-Import Bank of China and Citibank N.A. signed a $127 million USD senior secured syndicated credit (loan) agreement with Toisa Ltd for the acquisition of four vessels. This loan carried the following borrowing terms: a term (maturity) of 10 years and an interest rate of LIBOR plus a margin of 3%. Toisa Ltd.’s repayment obligations were secured by (i.e. collateralized against) first priority liens and security interests on the vessels and the related earnings, insurance, requisition compensation, charters, and charter guarantees related thereto as agreed in the Citi Cash Collateral Order. China Eximbank contributed $88.9 million USD to this syndicated loan. Citibank N.A. contributed $19.05 million USD. ING Bank N.V. later joined this facility; it contributed $19.05 million USD. Citibank Europe PLC served as the agent and Citi served as the security trustee. The facility was used to finance the successful acquisition of four vessels, the Toisa Envoy, Toisa Explorer, Toisa Elan, and Toisa Wave. As of January 2017, the unpaid principal balance on the loan was approximately $99,492,857 USD. On January 29, 2017, Toisa Ltd. filed for Chapter 11 bankruptcy protection under the United States Bankruptcy Code in Manhattan, New York. Toisa suffered from falling demand for use of its oil and gas supply vessels due to a collapse in oil prices, leaving it short of cash. At the time, Toisa was attempting to renegotiate this loan with China Eximbank, ING Bank, and Citibank. Then, in March 2019, a New York bankruptcy judge approved a plan to wind down and distribute assets of Toisa Ltd. after overruling an objection to the way it gathered consent to release company executives and other third parties from potential claims in the future.

Staff comments

1. Toisa Ltd. is a shipping company (oil fleet operator) that is legally incorporated in Bermuda and owned by Greek shipping magnate Gregory Callimanopulos. 2. One source (page 12 of "Toisa Limited Chapter 11 Case No. 17-XXXXX (XXX)") refers to the loan as the Citi Offshore Credit Facility. 3. ING Bank N.V. joined the Citi Offshore Credit Facility after it signed a transfer certificate taking half of Citi’s previous 30% share of the facility (see pg.12-13 of "Toisa Limited Chapter 11 Case No. 17-XXXXX (XXX)").