Standard Chartered closes three shipping finance deals worth over $1.6bn
* $684.5 million up to 12-year facility for BW Gas JuJu LNG in December
* $350 million Islamic facility for National Shipping Company of Saudi Arabia in November
* $572 million secured term loan facility to subsidiaries of Reliance Group in October
Standard Chartered said on Tuesday it had completed three shipping deals worth more than $1.6 billion in recent months for its clients in Middle East and Asia.
In December last year, it concluded a $684.5 million up to 12-year facility for BW Gas JuJu LNG, a joint venture between BW Group and Japan’s Marubeni.
Standard Chartered, as facility coordinator, led a syndicate of nine international banks in this transaction, which will refinance existing credit facilities for eight LNG (liquefied natural gas) tankers on long-term charters to Nigeria LNG, it said.
The bank structured a $350 million Islamic facility for National Shipping Company of Saudi Arabia (Bahri) in November. Bahri will use this facility to finance the construction and delivery of five very large crude carriers (VLCCs), which will be delivered in early 2018. As the exclusive carrier of Saudi Aramco’s crude oil sold on a delivered basis, Bahri will use these VLCCs to transport crude oil to the Americas, South Asia and Far East. Standard Chartered led as bookrunner, mandated lead arranger, investment agent and account bank with participation from three other banks in the deal.
The month before, the bank also closed a $572 million secured term loan facility to subsidiaries of Reliance Group. Reliance will use the loan to finance six units of very large ethane gas carriers. These gas carriers are used to transport ethane gas from the US to India.
“These deals, which are by no means easy structures, gave us the opportunities to work across teams in order to propose the most optimal and innovative financing solutions for each of the clients,” said Jamal Tartir, Chief Executive Officer, Saudi Arabia, Standard Chartered.