A loan of US$30.9m loan has been granted by the European Bank for Reconstruction and Development (EBRD) to support the acquisition of new tonnage by Ukrrichflot, Ukraine's largest ship operator. It is the bank's third transaction with the firm.
Ukrrichflot has ordered four 6,375-dwt dry cargo vessels from the Damen Okean yard in Ukraine. The first vessel is scheduled for delivery in the first quarter of next year.
The latest EBRD loan is a partial refinancing, consolidating the two previous loans as well as providing fresh funds of US$17.5m.An important aspect of the deal, the EBRD said, was that US$10m had been syndicated to the Bank of Scotland, 'indicating interest among western commercial financiers in Ukraine'.
Under the terms of the shipbuilding contract, nothing is payable until delivery of the vessels. As a result, NCM Gerling is providing credit insurance to Damen Okean’s bankers for the 70% of the finance represented by the loan.
