China Eximbank provides EUR 73.85 million loan for LNG Dubhe Vessel (HK-5080) Acquisition Project (Linked to Record ID#95933)

Project narrative

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 Record 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.