Fortescue Secures Funds for Eight VLOCs

Illustration; Image courtesy: Jiangsu Yangzijiang and Guangzhou Shipbuilding

Australian iron ore company Fortescue Metals Group Limited has finalized an agreement with the China Development Bank Financial Leasing Co., Ltd. (CDB Leasing) to finance eight Very Large Ore Carriers (VLOCs) currently under construction.

The finance lease facility funds 85 per cent of the VLOC cost for a minimum of 12 years on highly flexible terms, including early repayment and extension options for a further 3 years.

Out of the total construction cost of USD 556 million, the facility would cover USD 473 million of the expenses.

Fortescue will control the vessels for the life of the facility taking ownership on maturity or after early repayment. On delivery of each VLOC, 85 per cent of the payments will be drawn down on the finance lease facility, the company said.

Fortescue added that the agreement “represents a significant partnership with CDB Leasing and is the largest direct funding arrangement provided by a major Chinese financier for a non-Chinese company in Australia.”

“This is a groundbreaking financing transaction which builds and broadens Fortescue’s highly valued relationships with China through our first direct funding arrangement with a major Chinese leasing company,” Nev Power, Chief Executive Officer, said.

Being constructed at China’s Jiangsu Yangzijiang and Guangzhou Shipbuilding International shipyards, the first VLOC delivery is scheduled for November 2016, while the remaining vessels would join their owner by mid-2018.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Dec 2017 >>
MTWTFSS
27 28 29 30 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 31

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Mega Cargo Show 2018

The focus of the event is to bring all connected with cargo fraternity on a single platform…

read more >

Vietship 2018

Vietship is the largest and longest established exhibition in Vietnam featuring all aspect of Shipbuilding, Shipping and Offshore Technology.

Since its first event in 2002, Vietship has become the convergence and platform of advanced technologies regional and worldwide in shipbuilding and ship repair, marine equipment, waterway transportation and services, marine and offshore engineering.

After 16 years of eight consecutive editions, Vietship has affirm itself as an important event in enhancing cooperation and development, attracting investments, exchanging technology and creating ideal opportunities for trade promotion in the international maritime industry.

More info

read more >

LNG Bunkering Summit 2018

The conference will cover the obstacles facing both the shipping and port communities, exploring developments in conversion and new builds…

read more >