Syndication closed on Q-Ship financing

05 December 2003
Syndication closed in late November on the $230 million financing for Qatar Shipping Company (Q-Ship). The deal is expected to be signed in January.

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).

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