Shipping Finance – Important deal 2015
DVB closed a facility with BoCom Leasing, one of the leading Chinese financial leasing companies with a strong and diversified portfolio, for the financing of three Very Large Container Ship newbuildings. The vessels are on a 17-year hell-and-high-water bareboat charter to Mediterranean Shipping Company. The three vessels were delivered in January, April and July 2015. The nominal capacity of the first delivered vessel stood at 19,200 TEU making it the largest container vessel ever built up to that point in time.
The facility is structured as a nine-year full payout loan, sweeping more than 90% of the charter income for debt services. It is split into a K-sure covered tranche and a commercial tranche on a pari-passu basis. DVB originated, structured and led the transaction, acting as the coordinating bank, facility agent and K-sure agent. The debt financing was successfully syndicated, whereby Credit Suisse and Mega Bank were each invited to underwrite one third of the facility as co-arrangers. In the meantime, DVB placed a tranche with DZ BANK against full K-sure cover, leaving DVB with a limited commitment in the facility and attractive remuneration.
This is the first ever international ship financing by BoCom Leasing and the first ever K-sure covered ship financing for any Chinese financial leasing company. With the successful closing of this transaction, DVB has strengthened its close relationship with BoCom Leasing as well as with K-sure – not to mention enhancing the Bank’s sound track record within the Asian market container space.
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