United Arab Shipping secures $205m loan

United Arab Shipping Company (UASC) yesterday said it has concluded a $205 million (Dh752.8 million) term loan facility with Société Générale Corporate and Investment Banking (SGCIB) to fin-ance the acquisition of two A13 (13,100 TEU) vessels, Gulfnews reports.


SGCIB will act as Mandated Lead Arranger. UASC has ordered nine A13s.


The shipping company statement said the term loan facility is an optimised financing solution provided by SGCIB to UASC for two of its A13 vessels, comprising a combination of a lease and export credit covered by the Korean Export Credit Agency, (KSURE).


Jorn Hinge, president and chief executive officer of UASC, said: "We at UASC wish to thank SGCIB 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 A13s will significantly improve UASC's cost-base.


"Moreover, these ships will be equipped with the latest waste heat recovery technology, making them among the "greenest" ships available in the market."


Cost-effective solution


Basil Al Zaid, chief financial and technical officer of UASC, added: "Our established strategic relationships with SGCIB and KSURE through this transaction further cemented the close co-operation between SGCIB 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.


UASC was founded in 1976 jointly by the six shareholding states of Bahrain, Iraq, Kuwait, Qatar, Saudi Arabia and the UAE, with offices in more than 20 countries.


UASC is a major container shipping player in the Middle East and adjacent markets, covering over 200 ports and destinations.


UASC offers containerised and conventional cargo transportation, temperature controlled cargo and value added services to a diversified global client-base covering the Middle East, Europe, Mediterranean, Indian Sub-continent, Far East, Australia, West Africa and the Americas.
(Source:http://en.portnews.ru)