To finance a US$1.64 billion order for 12 ultra large containerships from shipbuilder Hyundai Heavy Industries (HHI), Kuwait-based shipping line, United Arab Shipping Co. (UASC) has so far secured a syndicated loan of US$512 million involving seven banks, according to the Shipping Gazette.
State-owned credit insurer Korea Trade Insurance Corporation (K-Sure), which guaranteed the loan, said in a statement that UASC has booked five 18,000-TEU ships and seven 14,000-TEU vessels at HHI, according to Reuters News RSS Feeds.
To finance the entire newbuilding order, the carrier plans to raise a further $410 million via equity financing and borrow another $739 million from commercial banks, a K-Sure official said.
The vessels are scheduled for delivery between November 2014 and January 2016. Six are under construction at HHI and the remainder will be built by Hyundai Samho Heavy Industries, a HHI subsidiary.
"UASC is willing to pay a high price for those ships as they will be the first giant box ships capable of being powered by conventional fuel and liquefied natural gas, saving fuel costs for the owner when cheap gas becomes available in bunkering stations," the report said.
The $512 million loan includes $150 million from Credit Suisse, $75 million from Bank of America, $75 million from IMG, $75 million from Societe Generale, $50 million from Standard Chartered, $43 million from Deutsche Bank and $25 million from DNB Bank.
The remaining $19 million is allocated to the seven banks proportionally, according to K-Sure.
State-owned credit insurer Korea Trade Insurance Corporation (K-Sure), which guaranteed the loan, said in a statement that UASC has booked five 18,000-TEU ships and seven 14,000-TEU vessels at HHI, according to Reuters News RSS Feeds.
To finance the entire newbuilding order, the carrier plans to raise a further $410 million via equity financing and borrow another $739 million from commercial banks, a K-Sure official said.
The vessels are scheduled for delivery between November 2014 and January 2016. Six are under construction at HHI and the remainder will be built by Hyundai Samho Heavy Industries, a HHI subsidiary.
"UASC is willing to pay a high price for those ships as they will be the first giant box ships capable of being powered by conventional fuel and liquefied natural gas, saving fuel costs for the owner when cheap gas becomes available in bunkering stations," the report said.
The $512 million loan includes $150 million from Credit Suisse, $75 million from Bank of America, $75 million from IMG, $75 million from Societe Generale, $50 million from Standard Chartered, $43 million from Deutsche Bank and $25 million from DNB Bank.
The remaining $19 million is allocated to the seven banks proportionally, according to K-Sure.