The financing was lead arranged by Credit Lyonnais, with 70 per cent of the loan covered by export credits from the Export-Import Bank of Korea. Tickets of $5 million, $10 million and $15 million were offered. Ten local and regional banks joined the deal at syndication. 'The response was very good,' says a source close to the deal. 'Legal documentation just has to be completed and hopefully we will wrap things up by early 2004.'

The debt package will be used to finance Q-Ship's fleet expansion. Six Aframax tankers and two liquefied petroleum gas (LPG) tankers are under construction by South Korean firms. In July, Hyundai Heavy Industrieswas awarded a QR 800 million ($220 million) contract to build the Aframax tankers and the LPG carriers are being supplied by STX Shipbuilding Company(MEED 17:10:03).