Societe Generale acted as sole arranger and sole underwriter for the transaction, which involved a combination of export credit agency and commercial financing. Seven of the ten vessels were covered by Korea’s export credit agency, K-Sure.
The funding covered the purchase of ten 50,000 tonne medium-range tankers, built by Hyundai Heavy Industries of South Korea.
Societe Generale underwrote the whole transaction on the basis of an innovative structure; for seven of the vessels, a 12-year ECA facility combined with a tied commercial loan has been signed.
The remaining three vessels were financed under a seven-year mortgage loan. Societe Generale, Crédit Agricole Corporate & Investment Bank, the Korea Development Bank and ABN Amro acted as mandated lead arrangers.
Tarik Al Junaidi, chief executive officer of Oman Shipping Company, described the agreement as a “landmark transaction”.
“We set a number of objectives that had to be fulfilled, including finding one single bank able to assist us in raising financing for the acquisition of 10 vessels, raising long-term financing to move towards the asset lifespan, obtaining competitive pricing, diversifying our banking pool and increasing the OSC group’s visibility within the international banking market, he added.
Richad Soundardjee, chief executive officer Middle East at Societe Generale, said: “By using ECA financing for the majority of this project, Oman Shipping Company is leveraging the capacity of international banks to join future deals.
“The Sultanate, like most GCC nations, has significant requirements when it comes to financing assets and infrastructure. As such, Oman Shipping Company is likely to serve as a reference for others in the Middle Eastern market.”
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