Latvian Shipping Company (LSC) has issued a short term loan to Dutch oil trading company Vitol Netherlands B.V. in the amount of EUR 284 million (USD 347.8 million).
The loan to Vitol Netherlands B.V., an LSC shareholder which owns 97% of shares with voting rights and has decisive influence on the company, has a maturity date of September 30, 2018.
The interest rate is 0.5% per annum including an option to terminate the loan before the maturity in order to partly cover the company’s group financial obligations.
LSC completed its capital rising process on December 8, 2017. The purpose of the share capital rising was partly to cover the Group’s financial obligations from the proceeds received from the issue of shares and to strengthen competitiveness.
The company said that the share capital rising process was carried out in due time, adding that the nearest balloon payments in total for 28 million USD for loans issued for the financing of the company’s vessels are due in June and July, 2018.
LSC said that the loan transaction has a positive impact both on its commercial and financial results.