Cexim to Give Loan to Cosco Shipping
THE Export-Import Bank of China has agreed to offer a $4.2bn loan to China Cosco Shipping Group for its 59 newbuildings ordered after the second half of 2014.
While a bonding agreement has yet to be finalised, a term sheet was inked between the two parties on Friday, MANA correspondent reported.
He said that the newbuildings to be funded included very large crude carriers, valemax bulkers and ultra large containerships.
“All these vessels are supported by Beijing’s build-and-scrap subsidies,” the source added.
Clarksons data shows that the shipping conglomerate, created by the merger of Cosco Group and China Shiping Group, boasts an orderbook containing 10 valemaxes, nine VLCCs and 25 large box carriers above 13,500 teu (17 of them are ultra large containerships exceeding 19,000 teu) — collectively priced at more than $5bn.
Along with the term sheet this time, Cexim and CCSG also signed a Yuan120bn ($18.1bn) strategic co-operation agreement, under which the former will provide the latter with a financial service package, including credit facilities, information consultancy, support for overseas investment and acquisition, as well as trade finance, the policy bank said in a statement.
“[We want to] help CCSG to reinforce its position as the world’s largest comprehensive shipping firm, and at the same time, further improve its fleet structure,” Cexim said.