Société Générale (SG) and the Bank of Tokyo Mitsubishi UFJ (BTMU) have signed a buyer credit loan totalling ¥15.5bn (US$167.7mn) to finance Denmark's acquisition of Japanese ships.
J. Laureitzen, a major shipping company in Denmark, mandated the banks to finance the purchase of six bulk carriers built by Japanese shipyards.
The deal is backed by Japan’s Nippon Export and Investment Insurance (Nexi), who have pledged to offer pure cover of exports by Japanese shipbuilding companies, with a reputation of high-quality technology, to developing countries.
Masayuki Miyata, vice-president of structured and trade finance insurance department at Nexi, tells GTR: “Nexi recognises that the financial crisis is continuing to impact the global markets, especially in the shipping finance sector in Europe.
“Although European ship companies have a long history and good reputation around the world, they now need financial support for the deliveries of large orders of vessels placed before the crisis. Some of the orders were placed with Japanese shipbuilding companies.
“Nexi would like to support and enhance exports from the Japanese shipbuilding companies through its trade insurance such as buyer’s credit insurance to help long-term funding for the buyers, including buyers in developed countries to which Japan’s other official ECA, JBIC, is not allowed to offer export loans.”
This follows the recent ECA-backed loan agreement from Sumitomo Mitsui Banking Corporation for the acquisition of two Japanese ships by SK Shipping Co, a Korean shipping company.
Last Updated March 30, 2010
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