Bank of China and SG CIB signed on 27 November 2009 a USD 167.3 million co-financing facility for the export of 6 medium-range product oil tankers built at Guangzhou Shipyard International Company Ltd (China State Shipbuilding Corporation Group) in China. The financing is in favour of Danish shipowner Torm A/S and its subsidiary Torm Singapore Pte Ltd. Torm is the second largest product tanker owner worldwide.
The financing, which represents 60% of the total shipbuilding contract price of the six vessels, consists 50% of a Sinosure Buyer Credit, which benefits from a 95% comprehensive cover from the Chinese export credit agency, and 50% of uncovered commercial loan. Bank of China and SG CIB both acted as Mandated Lead Arranger. SG CIB is also the coordinating bank, sinosure agent, commercial agent and hedging bank.
The deal was signed at Bercy during the Chinese Minister of Commerce Mr Chen Deming's visit to France and in the presence of Mrs Christine Lagarde, the French Minister of Economy, Finance and Employment. This is the first time a foreign bank closes a Sinosure backed export credit in shipping finance to support Chinese shipping export.