China Eximbank provides $22.4 million loan for construction and acquisition of a 53,100 dwt handymax bulk carrier (known as ‘Salim’) (Linked to Record ID#95762, 95763, 95764, 95779, and 95782)

📋 Staff Comments

1. The Islamic Republic of Iran Shipping Line Group (IRISL or گروه کشتیرانی جمهوری اسلامی ایران‎), also known by the business name IRISL Group, is a shipping line based in Iran. Its fleet comprises 115 ocean-going vessels with a total capacity of 3.3 million tons deadweight (DWT), with 87 ocean-going vessels owned by IRISL while the remaining 28 ships owned under the flag of subsidiaries such as Khazar Shipping, Valfajr as well as Iran-India Shipping Companies. They are manned by 6,000 personnel who work under the flag of the Islamic Republic of Iran in the Caspian Sea, Persian Gulf, international waters and various ports of the world.
2. IRISL has been sanctioned by the United States, United Nations, European Union, and other parties for its role in assisting Iran's nuclear and ballistic missile development programs. However, the return of the line to the world market was expected by early winter 2016, as a result of the Iran nuclear deal between Iran, the P5+1/EU3+3 powers, and the EU in August 2015. Since the USA pulled out of the Iran Nuclear Deal, the IRISL was added back to the U.S Treasury’s sanctions list on June 8, 2020.
3. Each of the six original loan agreements was amended by a side letter on August 6, 2008 and supported by the signing of a supplemental loan agreement on the same date. This issue warrants further investigation. The March 13, 2006 commercial contract gave IRISL the option of buying four additional ‘sisterships’, so one possibility is that the August 6, 2008 loan agreements and side letters allowed for the financing of these four additional vessels.
4. Given that the underlying commercial contract being financed by the loan was issued to a Chinese state-owned company, AidData assumes for the time being that all of the members of the loan syndicate were Chinese state-owned banks. This issue warrants further investigation.
5. The security deed supporting the loan agreement can be accessed in its entirety via https://www.dropbox.com/s/pin2tegzu269i6e/Security%20Deed%20for%20Salim%20Ship%20Loan%20Agreement.pdf?dl=0. The deed of covenant supporting the loan agreement can be accessed in its entirety via https://www.dropbox.com/s/jphcyt86d60swte/Deed%20of%20Covenant%20for%20Salim%20Ship%20Loan%20Agreement.pdf?dl=0. The mortgage supporting the loan agreement can be accessed in its entirety via https://www.dropbox.com/s/hascqlgquzfss5u/Mortgage%20Agreement%20for%20Salim%20Ship%20Loan%20Agreement.pdf?dl=0.
6. CATIC was eventually renamed as AVIC.

📚 Sources & References

• Certificate of the Registration of a Mortgage or Charge- Deed of Covenant for Salim Ship Loan Agreement
• Certificate of the Registration of a Mortgage or Charge- Mortgage Agreement for Salim Ship Loan Agreement
• CHINA AND IRAN: Mismatched Partners
• Chinese win ship order
• Dayang seals six bulkers
• Exporters set up new yards and vice versa
• Frequently Asked Questions - Recently Updated
• Security Deed for Salim Ship Loan Agreement
• SIXTEENTH SCHEDULE OF THE SECURITIES AND FUTURES (OFFERS OF INVESTMENTS) (SHARES AND DEBENTURES) REGULATIONS 2005 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.