Buyer's Credit for Ship Export to Denmark-Based Ultrabulk Group
Supporting Export of Bulk Carriers Built by Japanese Shipbuilders
- Area: Asia
- Marine and Aerospace
- Export Loans
The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed two buyer's credit agreements on July 21 (total maximum loan amount for two ships: approx. USD 14.1 million (JBIC portion)) with a Singapore-based shipholding subsidiary of the Ultrabulk A/S (Ultrabulk) Group, a Denmark-based bulk carrier operator under Chile-based ship owner Naviera Ultranav Limitada (Ultranav) Group. These loans are cofinanced with BNP Paribas, Tokyo Branch (lead arranger) (total cofinancing amount for two ships: approx. USD 28.3 million). The cofinanced portion is respectively insured by Nippon Export and Investment Insurance (NEXI).
The Ultranav Group is based in the Republic of Chile and is one of the leading ship owners and operators (mainly bulk carriers and tankers) in South America. These loans are intended to finance the Ultrabulk Group to purchase through the exporter MITSUI & CO., LTD., two 38,000 DWT*1
bulk carriers to be built by IMABARI SHIPBUILDING CO., LTD. These loans follow the previous buyer's credits to the Ultrabulk Group in October 2014*2
These loans are intended to support the export of ships built by Japanese shipbuilders which perform a significant role in the regional economy and associated industries, including mid-tier enterprises and small and medium-sized enterprises (SME). Thus, these loans will contribute to maintaining and strengthening the international competitiveness of the Japanese shipbuilding industry.
As Japan's policy-based financial institution, JBIC will continue to support the export of ships built by Japanese shipbuilders in partnership with the Shipbuilders' Association of Japan by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.
- *1 DWT stands for Dead Weight Tonnage and refers to the total carrying capacity of a vessel, including freight, fuel, food, drinking water, ship’s crew and their personal effects.
- *2 See press release on October 1, 2014.