China Development Bank provides EUR 74 million loan for LNG Merak Vessel (HK-5124) Acquisition Project (Linked to Project ID#95932)

On July 25, 2019, Arctic Yellow 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 148,000,000 syndicated facility (loan) agreement (ID#3100201901100002223) with China Development Bank and China Eximbank for the LNG Merak Vessel (HK-5124) 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 Merak Vessel (HK-5124) 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 Merak 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 Merak vessel naming ceremony took place on January 8, 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/hxhusqpig6nz6wq/Registration%20of%20Charge%20LNG%20MERAK.pdf?dl=0. 2. AidData assumes equal contributions from both members in the syndicate (EUR 74 million) with a total value of EUR 148). See Project ID#95932 for China Eximbank's contribution.

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