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.
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.
“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.