KfW IPEX-Bank Facility Agent in financing of 4 new build product tankers with significant European content
News from 2019-08-20 / KfW IPEX-Bank
Hafnia (a member of BW Group) and CSSC (Hong Kong) Shipping, as one of the world’s largest shipbuilding groups, have formed a joint venture named Vista Shipping to finance and operate product tankers. A term loan facility of USD 111 million is intended to be used to finance four LR1 newbuildings. A banking consortium consisting of KfW IPEX-Bank, Societe Generale Hong Kong Branch and OCBC Singapore participate with 33% each as lenders at the term loan facility and have reached financial close. KfW IPEX-Bank acts as Facility Agent, Sinosure Agent and Security Agent. The 12-year post-delivery financing profits from Sinosure cover and is secured by first- ranking ship mortgages over the vessels as well as joint and several guarantees from Hafnia and CSSC (Hong Kong) Shipping.
The operations of the new joint venture will be managed by Hafnia’s LR1 Pool in Singapore. The product tankers are being built at Guangzhou Shipyard International Co., Ltd. PRC. The European content of German and European suppliers, amounting to approx. USD 30 million, consists of highly efficient MAN main engines, electronic equipment and high-capacity pumping systems.