China Eximbank contributes to $98 million syndicated loan for Hull No. T3000-53 Vessel Construction Project

China Eximbank contributes to USD 98 million syndicated loan for Hull No.

T3000-53 Vessel Construction Project On September 2, 2011, PEFD 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.

T3000-53 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.

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, 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 T3000-53. Dalian Shipbuilding Industry Co, Ltd. was the contractor responsible for project implementation. Construction of the vessel (known as the keel laying) commenced on May 31, 2012.

The vessel was launched on November 7, 2012.