China Eximbank provides EUR 73.85 million loan for LNG Dubhe Vessel (HK-5080) Acquisition Project (Linked to Project ID#95933)
Commitment amount
$ 92929689.046883
Adjusted commitment amount
$ 92929689.05
Constant 2021 USD
Summary
Funding agency [Type]
Export-Import Bank of China (China Eximbank) [State-owned Policy Bank]
Recipient
Russia
Sector
Energy (Code: 230)
Flow type
Loan
Level of public liability
Private debt
Infrastructure
No
Category
Project lifecycle
Geography
Description
On July 25, 2019, Arctic Red 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#3100201901100002217) with China Development Bank and China Eximbank for the LNG Dubhe Vessel (HK-5080) 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 Dubhe Vessel (HK-5080) 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 Dubhe 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 Dubhe vessel naming ceremony took place on September 24, 2019 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 73.85 million) with a total value of EUR 147,700,000). See Project ID#95933 for China Development Bank's contribution.
Number of official sources
3
Number of total sources
4
Details
Cofinanced
Yes
Cofinancing agencies [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Direct receiving agencies [Type]
Arctic Red LNG Shipping Limited [Joint Venture/Special Purpose Vehicle]
Implementing agencies [Type]
Hudong-Zhonghua Shipbuilding Group Co., Ltd. [State-owned Company]
Insurance provider [Type]
China Export & Credit Insurance Corporation (Sinosure) [State-owned Company]
Collateral
first priority deed of assignment of the insurances of the borrower