Dry bulk shipping company Scorpio Bulkers, Inc. has received a commitment from ABN AMRO Bank N.V. for a loan facility of up to USD 39.6 million.
The facility was arranged by ABN AMRO Bank N.V., the Netherlands, with insurance cover to be provided from the China Export & Credit Insurance Corporation (Sinosure).
Scorpio said that the loan will be used to finance up to 60% of the market value upon delivery of two Kamsarmax vessels currently under construction at Tsuneishi Zhoushan Shipyard, China slated for delivery in Q3 2015 and Q1 2016.
The loan has two tranches which shall each mature 10 years from the date of delivery of each vessel.
According to the company, the terms and conditions of the facility, including covenants, will be similar to those in the company’s existing credit facilities and customary for financings of this type.
The loan is subject to customary conditions precedent and the execution of definitive documentation.
Scorpio Bulkers Inc. currently owns two Kamsarmax vessels, time charters-in 23 dry bulk vessels and has contracted for 78 dry bulk vessels consisting of 29 Ultramax, 21 Kamsarmax and 28 Capesize vessels, from shipyards in Japan, South Korea, China and Romania.
Upon final delivery of all of the vessels, the owned fleet is expected to have a total carrying capacity of approximately 8.7 million deadweight tonnes.