South Korea: STX Pan Ocean Takes USD 510 Million Loan to Finance New Vessel Orders

South Korea’s largest bulk shipper STX Pan Ocean succeeded in obtaining a sizeable loan from a group of domestic and overseas lenders to finance new vessel orders. STX Pan Ocean announced on Friday that it held a signing ceremony at the Millennium Hilton Hotel in Seoul the day before, for the $510 million syndicated loan offered by nine key banks.

The loan will be used to build 20 pulp carriers for the 25 year $5.0 billion contract signed with Brazil’s Fibria Celulose – the world’s largest pulp maker. The loan of $510 million will cover 70% of total expenses, which amounts to 16 out of 20 vessels. Funding for the remaining four vessels will be secured gradually, at a later date.

STX Pan Ocean awarded a $912 million contract to STX Offshore & Shipbuilding Co. in December to build 20 57,000- deadweight vessels at its yards in Jinhae, South Korea and Dalian in China.

The syndicated loan was offered by nine banks – the Korea Export-Import Bank of Korea, China Development Bank Corp, ABN Amro Bank, DnB NOR Bank, Deutsche Schiffsbank, BNP Paribas,, ING Bank, Standard Chartered Bank, and Credit Industriel et Commerciel.

By successfully financing the purchase of new pulp vessels, STX Pan Ocean lifted the cloud over its funding uncertainties. Meanwhile, the long-term contract will allow the company to further streamline and reinforce its profit structure, starting 2012.

Source: panocean, September 9, 2011

Share this article

Follow World Maritime News

Posted on September 9, 2011

In Depth>

Events>

<< Sep 2016 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 1 2

TOC Americas

TOC (The Terminal Operations Conference) has long been considered best in class by container terminal operators and their suppliers. Over time, TOC has evolved and whilst they continue to deliver the highest quality technical content in line with their heritage, they also recognise that they must now hear from stakeholders higher up the cargo chain. Therefore, there are now two distinct elements to the event:

The exhibition is a showcase for port & terminal technology and operations plus TECH TOC, the free to attend technical conference aimed at terminal operators and their suppliers. Many suppliers come together to showcase cutting edge solutions to their clients, the terminal operators and ports.

More recently, the events now placed a new focus on the container supply chain making them the premier business and networking event for the stakeholders, including shippers, carriers and 3pl’s as well as the global operators and port authorities. This conversation takes place in the more recently created Container Supply Chain Conference.

More info

read more >

BWMTech North America 2016

Key sessions at BWMTech NA 2016:
• A guide to Ballast Water Treatment System Selection.
• Market Modelling: Forecasting the market response to ratification…

read more >

Arctic Shipping Forum North America

The ASF Arctic Shipping North America 2016 Innovation Award will be presented to a company or individual that has developed an innovative idea…

read more >

Singapore International Bunkering 2016

SIBCON 2016 will be about perspectives, conversations, dialogue, and above all networking. With all discussions under Chatham House rules…

read more >