September 14 - South Korea's STX Pan Ocean has succeeded in obtaining a sizeable loan from a group of domestic and overseas lenders to finance new vessel orders.
The company revealed the USD510 million syndicated loan offered by nine key banks during a signing ceremony at the Millennium Hilton Hotel in Seoul, South Korea.
The loan will be used to build 20 ships and will cover 70 percent of total expenses, which amounts to 16 out of 20 vessels. Funding for the remaining four vessels will be secured gradually, at a later date.
The syndicated loan was offered by nine banks - the Korea Export-Import Bank of Korea, China Development Bank Corp, ABN Amro Bank, DnB NOR Bank, Deutsche Schiffsbank, BNP Paribas, ING Bank, Standard Chartered Bank, and Credit Industriel et Commerciel.
By successfully financing the purchase of new vessels, STX Pan Ocean says that it has lifted the cloud over its funding uncertainties. Meanwhile, the long-term contract will allow the company to further streamline and reinforce its profit structure, starting 2012.