Safe Bulkers, Inc. enters into credit agreements, to buy 3 newbuild vessels from Japan
Safe Bulkers, Inc. has entered into three credit agreements with Japanese governmental financial institutions amounting to US $122.4 million to finance the acquisition of three Japanese Post-Panamax class newbuild vessels, the shipping company press release said.
The previously-announced vessel acquisitions from Japanese shipyards relate to one vessel which was delivered in 2010 and two vessels which are expected to be delivered in 2011 and 2012, respectively.
The structure of the financing is in accordance with the Organisation for Economic Cooperation and Development-approved export credit schemes. The amount is repayable over twelve years with very competitive financial terms.
The credit agreements were concluded with the Japan Bank for International Cooperation, (the “JBIC”), and Citibank Japan, Ltd acting as lead arranger.
Nippon Export and Investment Insurance, the official export credit agency of Japan, insured almost half of the amount.
Safe Bulkers, Inc. is believed to be the first Greece-based shipping company to enter into financing arrangements of this kind with Japanese governmental financial institutions. The transaction expands the Company’s strong relationships with Japanese counterparties, from shipyards and charterers to Japanese financial institutions.
Athens-headquartered Safe Bulkers, Inc. is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world’s largest users of marine drybulk transportation services. The Company’s fleet comprises 16 Panamax, Kamsarmax, Post-Panamax and Capesize class drybulk vessels, all built post-2003. Safe Bulkers has contracted to acquire 11 additional drybulk newbuild vessels to be delivered in 2014.
The previously-announced vessel acquisitions from Japanese shipyards relate to one vessel which was delivered in 2010 and two vessels which are expected to be delivered in 2011 and 2012, respectively.
The structure of the financing is in accordance with the Organisation for Economic Cooperation and Development-approved export credit schemes. The amount is repayable over twelve years with very competitive financial terms.
The credit agreements were concluded with the Japan Bank for International Cooperation, (the “JBIC”), and Citibank Japan, Ltd acting as lead arranger.
Nippon Export and Investment Insurance, the official export credit agency of Japan, insured almost half of the amount.
Safe Bulkers, Inc. is believed to be the first Greece-based shipping company to enter into financing arrangements of this kind with Japanese governmental financial institutions. The transaction expands the Company’s strong relationships with Japanese counterparties, from shipyards and charterers to Japanese financial institutions.
Athens-headquartered Safe Bulkers, Inc. is an international provider of marine drybulk transportation services, transporting bulk cargoes, particularly coal, grain and iron ore, along worldwide shipping routes for some of the world’s largest users of marine drybulk transportation services. The Company’s fleet comprises 16 Panamax, Kamsarmax, Post-Panamax and Capesize class drybulk vessels, all built post-2003. Safe Bulkers has contracted to acquire 11 additional drybulk newbuild vessels to be delivered in 2014.
