Cosco Shipping Energy Transportation (CSET) has signed a loan agreement with Export Import Bank of China (China EximBank) worth USD 543.9 million.
As disclosed, the funds will be used to finance around 70 percent of construction of ten newbuild tankers.
The newbuilding ships include seven VLCC and three LR1-type tankers.
Cosco Corporation’s energy arm said in a stock exchange filing that the agreed loan period will be 12 years applicable after the delivery of each ship.
Formerly known as China Shipping Development Company Limited, CSET specializes in shipping of oil products and liquefied natural gas.
As of June 2016, the company operated 105 tanker vessels, including ten LNG carriers, with a total shipping capacity of 16.8 million DWT and held an order for 25 tanker vessels, 24 of them being LNG carrier newbuilds.
World Maritime News Staff