Hong Kong-headquartered Pacific Basin Shipping (PB) has secured US$350mn in new ECA financing.

Citibank Japan, the Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Trust Bank and the Japan Bank for International Corporation will extend loans for the 12-year facility. Insurance from Nexi will cover a US$175mn portion of this.

The facility is for the purchase of 18 bulk carriers, most of which will be built and exported by a number of yards in Japan, while a Japanese-owned yard in China will build two of them. Nexi’s backing is for these two carriers in the form of local buyer’s credit, which supports exports to third countries by Japanese companies incorporated in foreign countries.

Andrew Broomshead, Pacific Basin CFO, comments on the financing: “This new financing represents attractive funding which we consider beneficial to our shareholders and supplements US$314mn of loans we secured in 2013 in the form of ECA and commercial bank loans. We retain a healthy balance sheet with net gearing at 31 December 2013 of 34% and a cash position that offers both protection and continued buying power to support selective further ship acquisitions should attractive opportunities arise.”