United Arab Shipping Company (UASC) has secured a $302 million term loan facility on a club deal basis, as finance for three A13 (13,100 TEU) vessels ordered from Samsung Heavy Industries shipyard in Korea, marking the conclusion of financing for nine A13s with a combined total value of $1.5 billion.
The loan facility is financed at 70% by the Export Import Bank of Korea and 30% by three financial institutions acting as Mandated Lead Arrangers – BNPP (BNP Paribas), Industrial and Commercial Bank of China (ICBC) and Ahli United Bank (AUB).
The A13 newbuildings are expected to improve UASC’s cost base while enabling the company to compete more readily with other industry majors. Jørn Hinge, UASC President and Chief Executive Officer, said: “Less than 3 months separate us from the delivery of our first A13 on order and concluding this facility, reaffirming UASC’s steadfast commitment towards growing its fleet’s capacity to better service the region and our customers from around the world. We praise the efforts exerted by all parties to conclude this facility and greatly value the trust invested in UASC by such a calibre of regional and International financial institutions”.
Mr. Basil Al-Zaid, UASC Chief Financial and Technical Officer, added: “We have established strategic relationships with banks across borders and regions through this transaction. Both BNPP and AUB strongly supported UASC in successfully completing multiple major transactions. This facility served to further consolidate the existing collaborations and has also allowed UASC to establish new strategic relationships with KEXIM and ICBC, which we believe will scale up in the coming years due to our company’s renewed interest in increasing sourcing from Korea and China.”