CSAV Secures USD 347 Mil Loan Facility to Expand Fleet

As part of its fleet expansion strategy, Compañía Sudamericana de Vapores S.A. (CSAV) has successfully completed its banking finance plan for the acquisition of seven new 9,300 TEU vessels with the signing of a loan facility for US$ 347 million with six banks, to be disbursed on the delivery of the vessels.

The purchase of these vessels will be financed 60% by bank loan with the remaining 40% coming from the capital increase of US$ 330 million carried out by the company.

The participant banks in this financing are The Export-Import Bank of Korea, Korea Exchange Bank, Korea Development Bank, Banco Santander-Chile, Citi bank, N.A. and Deutsche Bank A.G. The first one acts as export credit agency, together with Korea Trade Insurance Corporation (”Ksure”).

“This is a very positive step that enables us to advance in increasing our own fleet, while showing the confidence of the financial market in the development and investment plan being implemented by the company”, said the chief executive officer of CSAV, Oscar Hasbún.

The new vessels will be built by the Korean shipyard Samsung Heavy Industries (SHI) and will be delivered as from the end of 2014. Their state-of-the-art technology equipment will enable CSAV to reduce bunker consumption costs significantly. Their incorporation will also allow the replacement of part of the vessels currently chartered by the company. CSAV will thus expand its percentage of own fleet to bring it into line with the shipping industry average.

CSAV, October 8, 2013