XRTC: Signing of the loan facility arranged by China Development Bank for Dryships
Tuesday, 21 February 2012 | 00:00
XRTC Business Consultants Shipping Finance Consultant of the China Development Bank Corporation, announces
the signing of the Export Buyer Credit Syndicated facility between China Development Bank and Dryships that took place on February 13th 2012 in Ningxia Province capital, Yinchuan.
The facility is part of the $5 bln Sino-Greek Shipping Finance Special Scheme that was announced by the Chinese Prime Minister Mr. Wen Jiabao during his visit in Greece in October 2010. The amount of the facility which is $122.58m, is covering the partial finance of the construction cost of 3 vessels of 206,000 dwt capacity each currently under construction in Shanghai Jiangnan-Changxing by Dryships Inc with delivery 2013/2014. The vessels will be classified by American Bureau of Shipping and China Classification Society. Lead Arranger Bank is China Development Bank/Ningxia Branch (CDB) and Co-Arranger is Bank of China/Ningxia Branch (BOC) while Bank of China/Zhejiang Branch participates as well, as Lender. XRTC acted as Project Advisor and Communication Agent while the law offices of Norton Rose and Papadimitriou & Partners contributed in the successful outcome of this loan facility.
In the signing ceremony organized by China Development Bank/Ningxia Branch in the capital of Ningxia province Yinchuan in North West of China, following executives were present: Zhao Yaozhong-General Manager CDB/Ningxia, Ke Changwei-Deputy General Manager CDB/Ningxia, Wang Yongtang-President BOC/Ningxia Branch, Suo Haichuan/Assistant President BOC/Ningxia Branch, Liu Jian-GM BOC/Zhejiang Branch, Liang Jidong Manager of Global Cooperation Department of Ningxia Province, Zhao Hui, Representative of the CDB in Cyprus, Dimitris Nenes-Chief Operating Officer Oceanfreight Marine Inc, George Xiradakis-Managing Director XRTC Business Consultants and other executives from both banks.
Mr. Zhao Yaozhong, General Manager of China Development Bank - Ningxia Branch mentioned in his opening speech:
“We are here today for the signing ceremony of the Export Buyer Credit Syndication Facility to Dryships Inc. from Greece. On behalf of China Development Bank (CDB), please allow me to take this opportunity to express our sincere gratitude for the combined effort from the ship owner, our financial advisor XRTC ltd, the legal consultant Norton Rose and our syndicate partner Bank of China (BOC).
The major business scope of CDB: domestically, to provide financial support for projects in critical infrastructure, basic industries, pillar industries and other key national projects; during the past 20 years, CDB has provided financing for 80% of the key national projects. Aboard, CDB has utilized its advantages in funding resources and experiences in the domestic projects to proactively expand its international business in order to achieve mutual benefit with its counterparties. By the year end of 2011, the outstanding amount of foreign currency loan reached USD 210 billion, with an increasing of USD 53.3 billion in 2011 alone, placing the Bank as the number one provider of such loans in the Chinese banking industry.
In October 2010, during the state visit of Premier WEN Jiabao to Greece, a major initiative was announced for a USD 5 billion “SINO-GREEK Ship Financing Special Scheme” which aims to deepen the cooperation between the two nations in ship building, overseas transportation and port construction. The Scheme is designated to CDB and CDB Ningxia Branch has been appointed internally. This facility agreement to be signed today, with CDB as the lead arranger and BOC as the co-arranger, is intended for the financing of three VLOCs with 206,000 DWT each built in Shanghai Jiangnan-Changxing Shipbuilding Company, with total loan amount of about USD 120 million in favor of Dryships Inc. This deal marked the second collaboration between CDB and Cardiff Group. We hope that more and more Greek ship owners will be enlarging its order book from China, while CDB shall utilize its comprehensive banking servicing capability to support such incentive.
Greek fleet is without doubt the backbone of the international shipping market and we sincerely wish a prosperous future for Cardiff Group and every success to this syndicated cooperation! Wish you all blessed with health and good luck!”
Mr. WANG Yongtang, President of Bank of China/Ningxia Branch thanked in his own speech all parties for the successful outcome of this first syndicated facility between the branches of CDB and BOC in Ningxia and he mentioned:
"Over the years, BOC has strived to utilize its integrated banking services platform both home and abroad and proactively explore its business scope to provide comprehensive financial services for all sectors, which not only enabled itself to make considerable contribution to the local economy but also realized its rapid development and became a channel for opening up of local economy and a backbone in the development of banking industry. In recent years, under the strategic development objectives of the Head Office, Bank of China has actively followed the “go global” strategic plan, strengthened its internal and external collaboration with other banking institutions to provide sound services for the local enterprise which “go global”. This Syndication Facility, which accomplished with the support of CDB Ningxia Branch and BOC Zhejiang Branch, is a facility which not only deepened the cooperation between BOC and CDB, but also built the platform for collaborating with Greek ship owners.
We shall take this opportunity to joint hand with the syndication partners to execute the facility agreement, complement the business features between each other and proactively explore new cooperation models so as to better grasp the chance of development, promote a long lasting mutually-befitting cooperation relationship among each side."
The Lender’s representative Mr. Dimitrios Nenes thanked both China Development Bank and its financial advisor XRTC Business Consultants, as well as the Co-Arranger Bank of China for the completion of this facility and expressed Mr. George Economou-Dryships’ CEO satisfaction. Mr. Nenes pointed out that the Group’s new building program is large as continues its fleet expansion and also mentioned the necessity for the Chinese administration and banking industry to accelerate the lending procedures.
Mr. George Xiradakis, Founder and Managing Director of XRTC Business Consultants, in his own speech warmly thanked CDB, Bank of China, Dryships and Oceanfreight that recently merged as well as the Law firms for the new transaction/benchmark for the Chinese banks relationship with Greek Shipping market. Mr. Xiradakis pointed out: “It is the first syndicated shipping transaction between 2 leading Chinese banks that was concluded under the new Sino-Greek Shipping Finance Special Scheme without the involvement of any Western bank. Its completion marks an important step towards the Chinese government’s goal to cover the banks finance dystocia both in Greek and international market aiding as well its shipbuilding sector. The new facility is the outcome of a long and constructive cooperation of Mr. George Economou with the Chinese banks which was attributed to the hard efforts of CDB’s executives in Ningxia and Beijing.”
XRTC through its continues presence and proven experience in Chinese shipping finance and its cooperation with CDBC, clearly supports the relations of Chinese banking industry with Greek Shipping and claims that all the long lasting procedures will be accelerated.
“We are happy to work together with China Development Bank that has recently started the establishment of an International Shipping Finance Center and also reinforces its presence worldwide through Ningxia Branch” Mr. Xiradakis mentioned, while he added that "Chinese banks offer competitive lending products both in loan structure as well as in financial cost. Of course the main problem that exists is the long time response in the new applications but I think that Chinese banking sector and particularly CDB is taking the appropriate measures to overpass such draw backs”.
Following the signing ceremony the General Manager of CDB Ningxia branch Mr. Zhao Yaozhong offered the official dinner. The ceremony was covered from Chinese Media.
XRTC Business Consultants Ltd. has been active in the Shipping Finance and Advisory arena since its inception in 1999. Throughout its life XRTC acted as commercial representative of international banks in the Greek Shipping market such as the French Banking Groups Credit Lyonnais and Natixis, advised National and International Institutions and advised international shipping companies. The company arranged a large numbers of shipping transactions through its International Partners and enjoys an excellent reputation. Since 2009, XRTC has been working closely with the Chinese ship finance market aiming to assist Chinese Banks to penetrate into the Greek Shipping Market while since 2010 is the Preferred Shipping Finance Consultant of China Development Bank. In 2010 XRTC awarded in Lloyd’s List Greek Shipping Awards as “Financier of the Year 2010” for the completion of the first bilateral loan between a Chinese bank and a Greek shipowner which was signed in the presence of both countries Premiers. Based in two main shipping centers of Greece, Piraeus and Chios Island, and representatives in USA and PRC. XRTC is equipped with a high degree of international shipping finance experience, through a team of professionals with proven industry knowledge, offering complete deal support from beginning to end in all aspects of transactions. Its Research & Development unit allows XRTC to deal with all aspects relating to International and Greek Shipping.
Source: XRTC Business Consultants Ltd.