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Overview

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

Commitments (Constant USD, 2023)$52,126,148
Commitment Year•2018Country of Activity•Marshall IslandsDirect Recipient Country of Incorporation•Marshall IslandsSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jul 26, 2018
Last repayment (originally scheduled)
Jul 23, 2030

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% Chinese ownership

Funding agencies

State-owned Policy Banks

  • Export-Import Bank of China (China Eximbank)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Vista Shipholding I Limited
  • Vista Shipholding II Limited (later Vista Shipholding II Pte. Ltd.)

Loan description

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

Grant element•22.3099%Interest rate (t₀)•4.33888%Interest type•Variable Interest RateLoan tenor•3-month rateMaturity•12 years

Narrative

Full Description

Project narrative

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%.

Staff comments

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.