April 13, 2024

MarineCurrents

Current Maritime News | Clean Energy

Seaspan made the last financing step for its Newbuild Program

2 min read
marine-news-COSCO-Harmony-Stephan-Grossien-Source-Seaspan

Illustration Only - COSCO Harmony, from Seaspancorp

Seaspan, the largest independent charter owner and manager of containerships, has secured $1.4 billion in finances to build ten LNG-fueled vessels.

As stated by Seaspan in 2021, “The new vessels for the next two years are almost chartered, so the vessels are still not enough, and Seaspan has to build new ones.”

Unchanged from Atlas’ third quarter results previously released, financing has been secured for 60 of its 70 newbuild vessels. Completion of financing for the remaining 10 newbuild vessels continues was expected prior to year-end.

This time Seaspan wrapped up the last of its financings for its full 70 vessel newbuild program. This includes three vessels recently delivered. The financing concluded on 23 December 2021.

The proceeds from these financings total approximately $6.9 billion. Seaspan will specifically use it through the construction of the newbuilds to fund a total investment of around $7.6 billion.

Proceeds from the Financing total approximately $1.4 billion and finance ten 15,000 TEU LNG-fueled newbuild vessels.

Graham Talbot, CFO of Atlas and Seaspan, commented: “We have now concluded binding financing arrangements for our full Newbuild Program, solidifying our long-term liquidity. We have demonstrated consistent success in executing on attractive growth opportunities at the right time, while diligently managing associated risk. We do this by ensuring we enter into newbuild contracts only once a long-term lease is in place with one of our high-quality counterparties, and that we have a clear line of sight to financing the project.”

The Financing combines two ship finance structures:

  1. Export credit agency (ECA) backed loans that two Korean ECAs support. These are the Korea Trade Insurance Corporation (K-Sure), and the Export–Import Bank of Korea (KEXIM);
  2. Sale-leaseback arrangements under special Japanese lease contracts (JOLCOs), providing Seaspan with various benefits.

In addition, this represents the first time Korean ECAs have provided export buyer credit insurance and a guaranteed tranche for a JOLCO transaction.

It is worth mentioning that, the partner Yangzijiang Shipbuilding will carry out the construction for a large number of newbuild containerships in the “Newbuild Program”. Yangzijiang Shipbuilding Group has maintained a good track of container shipbuilding since 2020.

Source offshore-energy

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