South Korea: STX Pan Ocean Gets USD 510 Million Syndicated Loan for New Ships

 

South Korea’s largest bulk shipper STX Pan Ocean succeeded in obtaining a sizeable loan from a group of domestic and overseas lenders to finance new vessel orders. STX Pan Ocean announced on Friday that it held a signing ceremony at the Millennium Hilton Hotel in Seoul the day before, for the $510 million syndicated loan offered by nine key banks.

The loan will be used to build 20 pulp carriers for the 25 year $5.0 billion contract signed with Brazil’s Fibria Celulose – the world’s largest pulp maker. The loan of $510 million will cover 70% of total expenses, which amounts to 16 out of 20 vessels. Funding for the remaining four vessels will be secured gradually, at a later date.

STX Pan Ocean awarded a $912 million contract to STX Offshore & Shipbuilding Co. in December to build 20 57,000- deadweight vessels at its yards in Jinhae, South Korea and Dalian in China.

The syndicated loan was offered by nine banks – the Korea Export-Import Bank of Korea, China Development Bank Corp, ABN Amro Bank, DnB NOR Bank, Deutsche Schiffsbank, BNP Paribas​,, ING Bank​, Standard Chartered Bank​, and Credit Industriel et Commerciel.

By successfully financing the purchase of new pulp vessels, STX Pan Ocean lifted the cloud over its funding uncertainties. Meanwhile, the long-term contract will allow the company to further streamline and reinforce its profit structure, starting 2012.

[mappress]

Source: STX PanOcean, September 9, 2011;