Saudi Arabia: UASC Takes Loan of USD 205 million to Finance Acquisition of Two Vessels

United Arab Shipping Company (UASC) announced the conclusion of a $205 million term loan facility with Société Générale Corporate & Investment Banking (SG CIB), acting as Mandated Lead Arranger, and KSURE Agent, on a French Tax structure to finance the acquisition of two A13 (13,100 TEU) vessels out of UASC’s new building order of nine A13s.

This term loan facility is an optimised financing solution provided by SG CIB to UASC for two of its A13 vessels, comprising of a combination of a lease and export credit, covered by the Korean Export Credit Agency, KSURE.

Mr. Jorn Hinge, President and Chief Executive Officer of UASC, said, “We at UASC wish to thank SG CIB for their effort in concluding this French Tax structure loan facility. This has been recognised as an act of confidence in UASC’s strategic importance and strong future prospects. In addition to strengthening UASC’s position in the container shipping industry, the A13’s will significantly improve UASC’s cost-base. Moreover, these ships will be equipped with the latest Waste Heat Recovery technology, making them amongst the ‘greenest’ ships available in the market.”

Mr. Basil Al-Zaid, Chief Financial and Technical Officer of UASC, added, “Our established strategic relationships with SG CIB and KSURE through this transaction further cemented the close co-operation between SG CIB and UASC. Along with the strong commitment from KSURE to support this transaction, all involved parties facilitated the finalisation of an overall cost effective finance solution in a timely manner. The successful completion of this transaction has increased the prospect for future similar transactions for both UASC and its strategic financial partners”.

The fleet of A13s will significantly improve UASC’s cost-base and enable it to compete head-to-head with other industry majors. This, together with progressing network expansion, increased investment in IT systems, as well as efficiency improvement measures, reconfirms the company’s leading position in the region as well as UASC’s unmistakable commitment to reducing the carbon footprint by bringing the world’s most environmentally friendly container vessels into service.

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Source: USAC, May 31, 2011.