Overview

Bank of Communications contributes to a $125 million USD syndicated loan to Zakher Marine International for the construction and acquisition of three jack-up barges

Commitments (Constant USD, 2023)$41,929,012

Commitment Year•2018Country of Activity•United Arab EmiratesDirect Recipient Country of Incorporation•United Arab EmiratesSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Nov 5, 2018

Start (actual): Jan 1, 2017

End (actual): Sep 1, 2018

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 Commercial Banks

China Bank of Communications (BoCom or BoComm)

Cofinancing agencies

Private Sector

HSBC Bank Middle East Limited
Mashreqbank PSC

Receiving agencies

Private Sector

Zakher Marine International Inc. (ZMI)

Implementing agencies

State-owned companies

Wuhan Marine Machinery Plant Co., Ltd. (WMMP)

Insurance providers

State-owned companies

China Export & Credit Insurance Corporation (Sinosure)

Loan description

2018 syndicated $125 million USD loan from Bank of Communications and others to Zakher Marine International for the construction and acquisition of three jack-up barges in the UAE

Interest type•Unknown

Narrative

Full Description

Project narrative

On November 5, 2018, financial close was reached on a deal in which a three-bank syndicate — consisting of Bank of Communications (BoComm), HSBC Bank Middle East Limited, and Mashreqbank PSC — entered into syndicated loan facilities worth $125 million USD with Zakher Marine International Inc. (ZMI) — a United Arab Emirates-based company providing offshore services — to finance the construction and acquisition of three new high-spec jack-up barges. China Export & Credit Insurance Corporation (Sinosure) provided insurance for this loan. HSBC acted as the export credit agency (ECA) coordinator and Mashreqbank acted as bookrunner. ZMI subsidiary Quality Marine Services (QMS) ordered the three platforms from Wuhan Marine Machinery Plant Co., Ltd. (WMMP) in December 2014. The first liftboat, QMS Achiever, was delivered in 2017. The final two barges were delivered in September 2018. They were known as QMS Sentinel and QMS Gladiator.

Staff comments

1. The individual breakdown of the three lenders' contributions to this $125 million USD loan is unknown. For the time being, AidData has estimated the contribution of BoComm by assuming that each lender contributed equally ($41,666,666.6667 USD) to the syndicated loan.