07 April 2004
DOHA: Qatar Shipping Company (Q-Ship), yesterday signed a $223.3m financing deal with Kexim of Korea and Credit Lyonnais of France.
The long term financing deal was signed with Korean Export Import Bank (Kexim), an Export Credit Agency (ECA) lender and a consortium of commercial banks led by Credit Lyonnais (CL) for Q-Ship’s fleet expansion.
This is Q-Ship’s first transaction with Kexim and CL. The financing is structured in a fashion that 70 per cent of the loan is being financed by Kexim and the balance by commercial lenders. CL played an instrumental role in arranging this finance. The 30 per cent portion was syndicated by CL, which was oversubscribed by almost 180 per cent, with other commercial banks such as Qatar National Bank, Commercialbank, Qatar, Gulf International Bank, Arab Bank plc and Emirates International Bank.
“Qatari and regional banks were given priority in joining this syndication as these banks have already extended support in Q-Ship’s expansion and growth” said the company’s Chairman and Managing Director, Salem Butti Al Naimi.
Incorporated in 1992, Q-Ship has been steadily advancing to become one of the leading ship owners in the Middle East. Six aframax size crude oil tankers, for delivery between October 2005 and June 2006, are being built at Hyundai Heavy Industries Co., Korea. Further, two LPG/Ammonia carriers from STX, Korea is being expected to be delivered in May and October this year.
Yesterday’s deal is to part-finance the acquisition of all these eight vessels and is for the period of 10 years from respective delivery dates of each vessel i.e. up to 2016. “Financing by international banks proves the level of confidence the international banking community share with us in our established strength and future. The Qatari and regional banks have been extremely supportive of Q-Ship’s expansion and growth” said Q-Ship’s chief executive, Nasser Al Romaihi.
Q-Ship’s fleet modernisation plans and high efficiency are expected to underpin its continued rapid growth.
Present at the signing ceremony were Korean Ambassador Mun-Su Chung, French Ambassador Alain Azouaou, the head of French Trade Commission, officials from Kexim, Korea, Credit Lyonnais, Paris and Abu Dhabi, QNB and CBQ from Qatar, GIB and AB from Bahrain, and the representatives from the law firm of Hassan Al Khater and Richards Butler. Q-Ship officials present included Mohammed Khalifa Al Sada, vice chairman; Brij Singhal, Assistant Chief Executive, Finance; and Neeraj Ritolia, Senior Financial Analyst.
DOHA: Qatar Shipping Company (Q-Ship), yesterday signed a $223.3m financing deal with Kexim of Korea and Credit Lyonnais of France.
The long term financing deal was signed with Korean Export Import Bank (Kexim), an Export Credit Agency (ECA) lender and a consortium of commercial banks led by Credit Lyonnais (CL) for Q-Ship’s fleet expansion.
This is Q-Ship’s first transaction with Kexim and CL. The financing is structured in a fashion that 70 per cent of the loan is being financed by Kexim and the balance by commercial lenders. CL played an instrumental role in arranging this finance. The 30 per cent portion was syndicated by CL, which was oversubscribed by almost 180 per cent, with other commercial banks such as Qatar National Bank, Commercialbank, Qatar, Gulf International Bank, Arab Bank plc and Emirates International Bank.
“Qatari and regional banks were given priority in joining this syndication as these banks have already extended support in Q-Ship’s expansion and growth” said the company’s Chairman and Managing Director, Salem Butti Al Naimi.
Incorporated in 1992, Q-Ship has been steadily advancing to become one of the leading ship owners in the Middle East. Six aframax size crude oil tankers, for delivery between October 2005 and June 2006, are being built at Hyundai Heavy Industries Co., Korea. Further, two LPG/Ammonia carriers from STX, Korea is being expected to be delivered in May and October this year.
Yesterday’s deal is to part-finance the acquisition of all these eight vessels and is for the period of 10 years from respective delivery dates of each vessel i.e. up to 2016. “Financing by international banks proves the level of confidence the international banking community share with us in our established strength and future. The Qatari and regional banks have been extremely supportive of Q-Ship’s expansion and growth” said Q-Ship’s chief executive, Nasser Al Romaihi.
Q-Ship’s fleet modernisation plans and high efficiency are expected to underpin its continued rapid growth.
Present at the signing ceremony were Korean Ambassador Mun-Su Chung, French Ambassador Alain Azouaou, the head of French Trade Commission, officials from Kexim, Korea, Credit Lyonnais, Paris and Abu Dhabi, QNB and CBQ from Qatar, GIB and AB from Bahrain, and the representatives from the law firm of Hassan Al Khater and Richards Butler. Q-Ship officials present included Mohammed Khalifa Al Sada, vice chairman; Brij Singhal, Assistant Chief Executive, Finance; and Neeraj Ritolia, Senior Financial Analyst.
© The Peninsula 2004
