Container shipping firm Seaspan Corp has now fully funded its 70-vessel newbuilding programme with a final US$1.4Bn financing deal
The US$1.4Bn deal will fund 10 LNG dual-fuelled 15,000-TEU container ships, each currently under construction at an unnamed shipyard.
Seaspan, part of US-listed Atlas Corp, has now put US$6.9Bn in place to fund newbuildings – three of which have already been delivered – and total investment in the 70-vessel project is US$7.6Bn.
Atlas chief financial officer Graham Talbot said the arrangements solidify the company’s “long-term liquidity” adding, “We have demonstrated consistent success in executing attractive growth opportunities at the right time while diligently managing associated risk.”
“We do this by ensuring we enter into newbuild contracts only once a long-term lease is in place with one of our high-quality counterparties, and that we have a clear line of sight to financing the project.”
Financing combines two ship finance structures – the first is export credit agency (ECA)-backed loans supported by two South Korean ECAs, here the Korea Trade Insurance Corporation (K-Sure), and the Export–Import Bank of Korea (KEXIM), which is additionally providing direct funding and a sale-leaseback arrangement under special Japanese lease contracts (JOLCOs).
The latest transaction is the second deal involving Japanese sale and leasebacks, following prior financing of US$838M in mid-December. Mr Talbot said the latest transaction is the company’s second such ECA-JOLCO deal and is backed by Citi Bank, K-Sure, and KEXIM.
Seaspan added that the financing documentation incorporates all requirements with respect to the Poseidon Principles. Other lenders involved include HSBC, Bank of China, Bank of America and Deutsche Bank.
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