China Eximbank contributes to $787 million syndicated debt financing package for acquisition of four LNG vessels (Pan Asia, Pan Americas, Pan Europe and Pan Africa)

China Eximbank and ICBC’s participation in $787 million syndicated debt financing package in 2014 for the acquisition of four LNG vessels in Marshall Islands In July 25, 2014, Pan Union Joint Venture — a special purpose vehicle that is legally incorporated in the Marshall Islands and jointly owned by Teekay LNG Partners L.P (later renamed Seapeak LLC), China LNG, CETS Investment Management (HK) Co.

Ltd. and BW Investments Pte.

Ltd. — signed four, 17-year, syndicated limited-recourse debt facilities worth $787 million with a group of banks to partially finance the $1 billion procurement of four 174,400m3 LNG vessels (Pan Asia, Pan Americas, Pan Europe and Pan Africa) to be built by Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. in China.

The members of the lender syndicate included Australia and New Zealand Banking Group (ANZ), Bank of America Merrill Lynch, The Bank of Tokyo-Mitsubishi UFJ Ltd, China Eximbank, Mizuho Bank Ltd, Sumitomo Mitsui Banking Corporation and Industrial and Commercial Bank of China (ICBC). All of these lenders served as Mandated Lead Arrangers.

China Eximbank reportedly contributed $393,500,000 to the syndicate, while the other lenders reportedly contributed the remaining $393,500,000.

The vessels were to be delivered between between September 2017 and January 2019 and chartered (under 20-year fixed-rate time-charter contracts with extension options) to Methane Services Limited, a subsidiary of BG Group plc, as part of their global shipping fleet.

In April 206, CNOOC announced that a 174,400m3 LNG carrier, the largest ever built in China was launched at Hudong-Zhonghua Shipbuilding (Group) Co., Ltd.

The vessel, named Pan Asia, was a dual-fuel diesel electric (DFDE) LNG tanker with a length of 290 meters, width of over 45 meters and a draft of over 26 meters.

It was be used to ship 1.5 million tons of liquefied natural gas per year from the Queensland Curtis LNG project in Australia to the world’s third largest LNG importer, China. Then, on October 13, 2017, the Pan Union Joint Venture took delivery of its first LNG carrier newbuilding (Pan Asia).