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UASC wins US$1.2 billion syndicated borrowing - 2.2 times oversubscribed
THE United Arab Shipping Co (UASC) has received US$1.2 billion in financing through a syndicated loan facility to pay for new mega ships, reports Lloyd's List.
"In a capital-intensive industry like container shipping, it is critical to invest in new assets to keep up with market growth to expand," said UASC chief financial officer Basil al-Zaid.
The multi-tranche loan facility is part of a larger $1.7 billion debt financing package related to UASC's $2.3 billion bill for 17 newbuildings, including eleven 14,000 TEUers and six 18,000 TEU ships.
Among the widely syndicated lenders are Deutsche Bank, Qatar National, Arab Banking Corp, Ahli United Bank, DVB Group Merchant Bank (Asia), BNP Paribas, Bank, Saudi Fransi, Credit Suisse, Bank of America, National Association, ING Bank, Societe Generale and Standard Chartered.
UASC said the borrowing was oversubscribed by 2.2 times. All tranches are to be fully repaid within 12 years.
Said UASC president and CEO Jorn Hinge: "As the UASC vision is linking the Middle East to the world, we appreciate that numerous regional Middle East banks have been involved in supporting this facility."
In August, Hyundai Heavy Industries won an order from UASC to build five 18,000 TEU and five 14,000 TEU vessels, with options for another 18,000 TEUer and six more 14,000-TEU vessels. Ships are to be delivered between November 2014 and January 2016.
"In a capital-intensive industry like container shipping, it is critical to invest in new assets to keep up with market growth to expand," said UASC chief financial officer Basil al-Zaid.
The multi-tranche loan facility is part of a larger $1.7 billion debt financing package related to UASC's $2.3 billion bill for 17 newbuildings, including eleven 14,000 TEUers and six 18,000 TEU ships.
Among the widely syndicated lenders are Deutsche Bank, Qatar National, Arab Banking Corp, Ahli United Bank, DVB Group Merchant Bank (Asia), BNP Paribas, Bank, Saudi Fransi, Credit Suisse, Bank of America, National Association, ING Bank, Societe Generale and Standard Chartered.
UASC said the borrowing was oversubscribed by 2.2 times. All tranches are to be fully repaid within 12 years.
Said UASC president and CEO Jorn Hinge: "As the UASC vision is linking the Middle East to the world, we appreciate that numerous regional Middle East banks have been involved in supporting this facility."
In August, Hyundai Heavy Industries won an order from UASC to build five 18,000 TEU and five 14,000 TEU vessels, with options for another 18,000 TEUer and six more 14,000-TEU vessels. Ships are to be delivered between November 2014 and January 2016.
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