China Eximbank provides $133.7 million loan to Frontline Ltd. for the acquisition of four LR2 tankers

Project narrative

In November 2020, the Export-Import Bank of China entered into a $133.7 million USD senior secured term loan facility with Frontline Ltd. to partially finance the acquisition of four LR2 tankers under construction by Shanghai Waigaoqiao Shipbuilding (SWS), a Chinese shipyard owned by the industrial conglomerate China State Shipbuilding Corp (CSSC). The facility carried a tenor (maturity) of 12 years, an interest rate of LIBOR plus a margin in line with the Frontline's other loan facilities, and an amortization profile of 17 years commencing on the delivery date from the yard. Frontline also purchased credit insurance from Sinosure. Under this facility, Frontline drew down $33.4 million USD in March 2021, $33.4 million USD in April 2021, $33.4 million USD in September 2021 and $33.4 million USD in November 2021. The facility was fully drawn as of December 31, 2021. The four LR2 tankers were known as Front Fusion, Front Future, Front Favour and Front Feature. Frontline took delivery of Front Fusion in March 2021; of Front Future in April 2021; of Front Favour in September 2021; and of Front Feature in November 2021.