China Eximbank provides EUR 74.25 million loan for LNG PHECDA Vessel (HK-5160) Acquisition Project (Linked to Project ID#95926)

On July 25, 2019, Arctic Orange LNG Shipping Limited — a special purpose vehicle that is legally incorporated in Hong Kong and jointly owned by MOL (Europe Africa) Ltd. (a UK-registered company) [50% equity stake] and China COSCO Shipping Corporation Limited [50% equity stake] — signed an EUR 148,500,000 syndicated facility (loan) agreement (ID#3100201901100002221) with China Development Bank and China Eximbank for the LNG PHECDA Vessel (HK-5160) Acquisition Project. MUFG Bank Ltd. served as the facility agent and account bank, while China Eximbank served as the security trustee. The borrowing terms of the loan are unknown. However, it is known that the borrower purchased a credit insurance policy from Sinosure. It is also known that the loan is secured by (i.e. collateralized against) a first priority deed of assignment of the insurances of the borrower. The purpose of the project was to facilitate the acquisition and construction of a vessel known as the LNG PHECDA Vessel (HK-5160) to service the Yamal LNG Project, which involves the construction of a liquefied natural gas (LNG) plant in Sabetta in the north-eastern part of Russia’s Yamal Peninsula (and is being financed by China Eximbank, China Development Bank, and the Silk Road Fund as captured via Project ID#67041, 67064, 67062, 67063, 67040, 67068, 67069). The LNG PHECDA vessel was meant to facilitate year-round use of the Arctic sea routes and transportation of the gas from the plant in Sabetta. Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. was the contractor responsible for the construction and delivery of the vessel. The LNG PHECDA vessel naming ceremony took place on August 19, 2020 to mark the completion of the project’s construction phase.

Additional details

1. The registration of charge can be accessed in its entirety via https://www.dropbox.com/s/i8k0jckxocogknc/Registration%20of%20Charge%20LNG%20PHECDA.pdf?dl=0. 2. AidData assumes equal contributions from each funding agency (EUR 74250000). See Project ID#95926 for China Development Bank's contribution.

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