Uni-Asia Finance Corporation Announces Update of Vessel Acquisition Projects

 

The Board of Directors of Uni-Asia Finance Corporation would like to announce an update on the progress of the various vessel acquisition projects under Uni-Asia Shipping Limited, a wholly owned subsidiary of the Company, including the projects of Luna Bulkship S.A. and Imperial Bulkship S. A.

1. Luna Bulkship Project

As announced previously on 18 August 2011, Luna Bulkship S.A. (“Luna Bulkship”), a wholly owned subsidiary of the Company through Uni-Asia Shipping, has acquired a 28,300 dwt second hand handy bulk carrier pursuant to the Memorandum of Agreement entered into between Sunrise Shipping S.A. and Luna Bulkship on 17 August 2011. The vessel was successfully delivered on 12 September 2011.

Luna Bulkship entered into a time charter agreement with Daiichi Chuo Kisen Kaisha for a tenor of one year on 8 September 2011 and the time charter will commence immediately after expiry of the current time charter contract with Mitsui O.S.K. Lines, Ltd in October 2011. On 9 September 2011, Luna Bulkship entered into a loan agreement with a subsidiary of IBJ Leasing Co., Ltd (which belongs to the Mizuho Financial Group, one of the largest financial groups in Japan) for a three-year loan facility of US$ 12.5 million; the loan is backed by a guarantee from the Company and the full amount of the loan was drawn down on 16 September 2011. The loan was used solely for the purpose of financing of the acquisition of the vessel.

2. Imperial Bulkship Project

As announced previously on 22 September 2010, Imperial Bulkship S.A. (“Imperial Bulkship”), a wholly owned subsidiary of the Company through Uni-Asia Shipping, had acquired a 29,100 dwt newbuilding handy bulk carrier pursuant to a novation agreement on 13 August 2010. The vessel is expected to be delivered in the second quarter of 2012.

Imperial Bulkship entered into a three-year time charter agreement with Pacific Basin Chartering Limited on 23 September 2011. On 23 June 2011, Imperial Bulkship entered into a loan agreement with Mega International Commercial Bank Co., Ltd .and Hua Nan Commercial Bank Ltd, both of which are financial institutions in Taiwan, for a five-year loan facility of US$16.1 million. As the successful conclusion of the charter hire contract is one of the conditions precedent for a first drawdown, this loan facility is now available for financing the acquisition of the vessel.

3. Uni-Asia Shipping vessel acquisition projects

As announced previously, the Company has acquired a total of five handy bulk carriers to date under Uni-Asia Shipping through its various vessel owning subsidiaries. The current situation of vessel acquisition projects are summarised as follows:

Among the five vessels acquired, three vessels were delivered in 2011 and have started contributing to the group’s profit. The remaining two vessels are scheduled to be delivered in the second quarter of 2012 and the third quarter of 2013, respectively.

Among the five vessels, four vessels have to-date secured term loan facilities and charter contracts. The remaining vessel, owned by Jade Bulkship S.A., has yet to secure a term loan facility and charter contract, as delivery of the vessel is scheduled for the third quarter of 2013.

The total consideration for each vessel acquisition project has been or will be financed by term loan facilities provided by external financial and other institutions, the US$ 20 million paid-up capital of Uni-Asia Shipping, the Uni-Asia group’s internal resources, as well as a portion of the Company’s recent rights issue proceeds (disbursements as announced on 23 August 2011 and 14 September 2011, respectively).

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Source: Uni-Asia Finance Corporation, October 4, 2011.