French banking and financial services company Societe Generale has arranged $227m in finance for the state-owned Oman Shipping Company (OSC) to help purchase ten new tankers.
The arrangement includes the participation of a combination of export credit agencies (ECA) and commercial financing, and will see the South Korean ECA K-Sure provide funding for seven of the ten vessels through a 12-year facility.
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The K-Sure facility is combined with a tied commercial loan, and the remaining three tankers to be bought by OSC will be financed through a seven-year mortgage loan.
OSC’s new 50,000dwt medium-range tankers will be built by Hyundai Heavy Industries, and chartered to Shell Tankers Singapore for a period of seven years.
Oman Shipping Company chief financial officer Venugopal Venkatesh was quoted by Trade Arabia as saying: “At the start we set a number of objectives that had to be fulfilled.
"These included finding one single bank able to assist us in raising financing for the acquisition of ten vessels, raising long-term financing to move towards the asset lifespan, obtaining competitive pricing, diversifying our banking pool and increasing the OSC Group’s visibility within the international banking market.
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By GlobalData“Societe Generale’s commitment to meet all our requirements through an innovative model raised the profile of OSC, and attracted liquidity to successfully close this transaction.”
Crédit Agricole Corporate & Investment Bank, Korea Development Bank and ABN Amro also acted as mandated lead arrangers for OSC to arrange funding for the procurement of the tankers.
