Standard Chartered closes three shipping deals in excess of $1.6 billion
In November last year, the Bank leveraged its strong expertise in shipping finance and Islamic financing to structure the $350 million senior secured Murabahah facility for National Shipping Company of Saudi Arabia (“Bahri”). This facility will be used by Bahri to finance the construction and delivery of five Very Large Crude Carriers (VLCCs), which will be delivered in early 2018.
As the exclusive carrier of Saudi Aramco’s crude oil sold on a delivered basis, Bahri will use these VLCCs to transport crude oil to the Americas, South Asia and Far East. This was a landmark shipping transaction in the Middle East for 2016, where Standard Chartered led as bookrunner, mandated lead arranger, investment agent and account bank with participation from three other banks.
Standard Chartered also closed a $572 million senior secured term loan facilities to subsidiaries of Reliance Group which closed in October 2016 and will finance six units of Very Large Ethane Gas Carriers. These gas carriers transport ethane gas from the US to India and support Reliance Group’s $1.7 billion “Ethan Import Project” to secure feed for its gas crackers, improve production cost position by diversifying feedstock and replacing oil linked feeds propane and naphtha in existing crackers and provide downstream capacity enhancement.
Standard Chartered, given its strong shipping expertise, played a significant role of a trusted advisor to Reliance Group as commercial facility coordinator on the structure of its first shipping finance deal. This award-winning transaction showcased an innovative ship financing structure which was finally oversubscribed by 12 international banks. Most recently in December 2016,
Standard Chartered concluded a $684.5 million, up to 12-year non-recourse shipping finance facility, for BW Gas JuJu LNG Limited (a joint venture partnership between BW Group and Marubeni). Standard Chartered, as facility coordinator, led a syndicate of nine international banks in this transaction, which will refinance existing credit facilities for eight LNG (liquefied natural gas) tankers on long-term charters to Nigeria LNG. The Bank also acted as the mandated lead arranger, agent and security trustee, account bank and hedging bank in this transaction which was the largest deal for BW Group in 2016 and a key milestone for them.