- Region: Asia
- Marine and Aerospace
- Export Loans
April 25, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) will provide loans totaling in aggregate up to USD175 million (JBIC portion) to PB Vessels Holding Limited (PBVH) incorporated in the British Virgin Islands, a wholly-owned subsidiary of leading Hong Kong-based ship operator Pacific Basin Shipping Limited (Pacific Basin)*1, to fund the purchase of 18 bulk carriers.
JBIC signed today a loan agreement totaling about USD152.1 million (JBIC portion) to fund PBVH's purchase of 16 bulk carriers to be built by four Japanese shipbuilders. For the remaining two bulk carriers, JBIC has also signed two loan agreements totaling about USD22.8 million (JBIC portion) to fund PBVH's purchase of two further bulk carriers, which will be built by TSUNEISHI GROUP (ZHOUSHAN) SHIPBUILDING Inc. (TZS), a Chinese wholly-owned subsidiary of TSUNEISHI HOLDINGS CORPORATION (Tsuneishi). Citibank Japan Ltd., The Bank of Tokyo-Mitsubishi UFJ, Ltd., and Sumitomo Mitsui Trust Bank Limited have participated in these loans as cofinancing banks, with the overall cofinancing amounts totaling about USD 304.3 million for the 16 vessels and about USD45.7 million for the two vessels. Nippon Export and Investment Insurance (NEXI) provides insurance for the portions cofinanced by the private financial institutions.
Pacific Basin, the de facto purchaser of these bulk carriers, is headquartered in Hong Kong and is one of the world's leading operators of handysize and handymax dry bulk carriers. Pacific Basin gives high praise to the quality of Japanese shipbuilding, and these several newbuilding orders by the company were considered appropriate for JBIC financing. These loans to the Pacific Basin Group follow previous facilities provided in March 2013 for funding the purchase of four bulk carriers*2, and in August 2013 for two bulk carriers.*3
These loans will support Japanese shipbuilders' export of new vessels from Japan and support the expansion of Tsuneishi's business internationally via its Chinese subsidiary TZS. Therefore, the loans will provide comprehensive and timely support for individual export contracts of Japanese exporters. These loans will thereby contribute to maintaining and strengthening the international competitiveness of the Japanese shipbuilding industry.
JBIC will continue to support the export and sales of ships to be built by Japanese shipbuilders, or their overseas affiliate shipbuilders, to strengthen their capacity to win orders in cofinancing with private financial institutions and in partnership with the Shipbuilders' Association of Japan.