China Eximbank provides $51.8 million loan for the acquisition of two LR1 vessels

On July 26, 2018, Vista Shipholding I Limited and Vista Shipholding II Limited — two special purpose vehicles that are legally incorporated in the Marshall Islands and wholly owned subsidiaries of Vista Shipping Limited — entered into a $51.8 million senior secured term loan facility with the Export-Import Bank of China to finance the delivery of two LR1 vessels. The facility has a maturity date falling twelve years after draw down and bears interest of three months LIBOR plus a margin of 2.00%. The facility includes a financial covenant requiring the borrowers to have a fair market value ≥125% of the aggregate facility. As at June 30, 2019, the undrawn amount of the senior secured term loan facility amounted to $25.9 million (equal to 50% of $51.8 million). As such, the loan’s effective disbursement rate of June 30, 2019 was 50%.

Additional details

1. Vista Shipping Limited was established in 2018 as a joint venture between Hafnia Tankers (a company incorporated in Bermuda) and CSSC Shipping (a Chinese state-owned company). 2. AidData has estimated the all-in interest rate by adding 2% to average 3-month LIBOR in July 2018 (2.339%). 3. AidData has categorized this loan as collateralized since official sources refer to it as a ‘secured’ loan.

Number of official sources

4

Number of total sources

5