The Japanese Bank for International Co-operation (JBIC) has arranged a shipping transaction in Hong Kong.
The export credit agency (ECA) worked with Citi’s Japan operation to co-finance a US$50.9mn loan to Pacific Basin Shipping for the purchase of two handymax bulk carriers. The commercial portion of the debt (50%) will be covered by Nexi buyer’s credit.
The overall financing has a tenor of 12 years. The ships will be built by the Chinese subsidiary of Tsuineishi Group, a Japanese company. It’s hoped they will be ready for delivery by the end of 2013.
Pacific Basin’s CFO Andrew Broomhead says the company is keen to continue to tap the ECA market for its “long tenors and favourable repayment profiles”, but also says it will continue to utilise the commercial banking sector. He continues: “This loan represents an attractive opportunity for us to access additional Japanese ECA financing, with a 12-year repayment profile at a time when we are committed to growing our fleet of owned ships.”