Sovcomflot signs agreement for $700 mln syndicated loan
MOSCOW. Dec 11 (Interfax) - OJSC Sovcomflot has signed an agreement with a consortium of international banks for a loan worth $700 million, the company said on Monday.
The agreement is binding for seven years. The consortium includes Citibank, Bank of America Merrill Lynch, BNP Paribas, DVB Bank, ING Bank, Nordea Bank and Morgan Stanley Senior Funding.
The money will be used to refinance existing debt and to finance construction of new ships, the Russian shipping company said in a statement. The loan will be secured by ships in the existing fleet and under construction. The loan is one of this year's largest and longest in the tanker industry, Sovcomflot said.
In addition to classic bank financing secured by ships, Sovcomflot uses debt financing instruments such as Eurobonds, structured loans involving national export lending agencies and project financing.
The Sovcomflot group is Russia's largest marine shipper of hydrocarbons and service provider for offshore oil and gas exploration and production projects. The company, which is wholly owned by the government, has a fleet of 156 ships with a combined deadweight of about 12 million tonnes. Sovcomflot is involved in providing services to major offshore energy projects in Russia and the world, including Sakhalin-1, Sakhalin-2, Varandei, Prirazlomnoye, Tangguh, Escobar and Peregrino.