China Eximbank contributes to $98 million syndicated loan for Hull No. T3000-52 Vessel Construction Project

On September 2, 2011, PEFC Shipholding S.A. -- a special purpose vehicle that is legally incorporated in Panama and a wholly-owned subsidiary of SK Shipping Co, Ltd (a South Korea-registered company) -- signed a $68,600,000 syndicated loan agreement with China Eximbank and DVB Group Merchant Bank (Asia) Ltd for the Hull No. T3000-52 Vessel Construction Project. The proceeds of the loan were to be used by the borrower to finance 70% of the cost of a $98 million shipbuilding contract with Dalian Shipbuilding Industry Co, Ltd., which was signed on June 25, 2010. The borrowing terms of the loan are unknown. However, it is known that the loan is secured by (i.e. collateralized against) cash earnings from a bareboat charter deposited in a bank account (known as the SK Shipping Co Ltd - BBCHP Earnings Account with account number 650-008221-170), a deed creating security over the share capital of the borrowing institution, and a mortgage on the vessel, among other things. The purpose of the project was to facilitate the construction an acquisition of a 320,000 DWT class crude oil carrier type vessel with hull number T3000-52. Dalian Shipbuilding Industry Co, Ltd. was the contractor responsible for project implementation. Construction of the vessel (known as the keel laying) commenced on December 12, 2011. The vessel was launched on June 8, 2012.

Additional details

1. The precise monetary value of China Eximbank’s contribution to the loan syndicate is unknown. For the time being, AidData assumes equal contributions ($34,300,000) across the two known members of the syndicate.

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