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SCI raises USD 206.56 mn for acquisition of two new VLCCs

Written by: Staff

Mumbai, Apr 19 (UNI) Public sector Shipping Corporation of India (SCI) has successfully concluded the raising of finances to the tune of USD 206.56 million for two Very Large Crude Carriers (VLCC) of 319,000 DWT each.

Informing the BSE, the Company said the two VLCCs, under construction at Daewoo Shipbuilding&Marine Engineering Co in South Korea, are the largest ever ships to be ordered under Indian registry, surpassing earlier two VLCCs acquired by SCI of the size of 316,000 DWT each.

The Company has signed a Loan Agreement of USD 103.28 million with State Bank of India on April 19 for financing one of the VLCCs.

Earlier, on March 30, it had signed a Loan Agreement of USD 103.28 million with KfW, Germany, in association with Citigroup and Nordea Bank for financing the other VLCC. This is the first shipping loan offered by KfW to any Indian organisation. These loans together constitute the highest amount of loan ever been raised by the Company, at a time, for acquisition of ships.

Both FCNB Loan from SBI and External Commercial Borrowing from KfW, Germany, in association with Citigroup and Nordea Bank have tenure of ten years after delivery of the respective ships. These loans have been negotiated and concluded on the stand alone financial strength of the Company without the requirement of any Government of India guarantee. Both these loans have been arranged at fine rates which were possible due to the liquid nature of the assets, that is the ships which are offered as security.


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